At least two companies, including Reliance Defence and Engineering and Liberty House Group, may have expressed interest in acquiring certain assets of the debt-laden ABG Shipyard.
The consortium of lenders has mandated SBI Caps for finding a buyer for their 51 per cent equity which they got after conversion of debt.
According to industry sources, Reliance is not interested in the entire company but only certain assets that fit in with its existing business.
ABG Shipyard said in a regulatory filing that the lenders have short listed few “prospective bidders” for the company after invoking their rights to change the ownership. Its board has authorised a few top officials, including Chairman Rishi Agarwal, to take necessary steps with respect to the proposed transaction.
The lenders have been trying for a long time to recover their loans, including through corporate and strategic debt restructuring routes.
Financial challengesIn view of the financial challenges faced by the company, the lenders to the company in meetings of joint lenders forum had decided to invoke the rights of the lenders to change the ownership of the company or to acquire assets and liabilities.
Lenders had acquired majority stake in the company upon converting part of their debt into equity under the SDR scheme.
ICICI Bank had acquired the highest 11.08 per cent stake in the company in October last year.
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