London-based metals group Liberty House has offered to pump in ₹5,200 crore on a deferred payment basis of over 5 to 10 years for ABG Shipyard Ltd, in a fresh round of bidding for the debt-laden shipbuilder that closed on Tuesday.
Liberty House has also agreed to bring in ₹400 crore upfront in its bid submitted to the Interim Resolution Professional (IRP) from BDO India LLP, which is overseeing the resolution process under the Insolvency and Bankruptcy Code (IBC).
The offer made by Liberty House, led by India-born British businessman Sanjeev Gupta, is more than the liquidation value of ₹2,200 crore set by the lenders.
Liberty House was the only entity to submit an offer for the yard that owes some ₹18,245 crore to banks led by ICICI Bank Ltd.
“The offer of Liberty House was well received by the lenders as it was above the liquidation value,” a person briefed on the bid said, asking not to be named.
The IRP has forwarded the bid to the committee of creditors, expected to meet on April 10, to take a final call on the offer. The resolution of ABG Shipyard has to be completed by April 30.
The lone bid submitted by Liberty House, in an earlier round of bidding, was rejected because it was below the liquidation value.
ABG Shipyard is among the list of 12 large companies that RBI had identified in June 2017 for banks to refer to the bankruptcy court immediately.
Mahindra & Mahindra and the Mistry family-controlled Shapoorji Pallonji Group had given expression of interest for the company, but neither of them submitted binding bids. Among lenders, ICICI Bank has made the highest claim of ₹4,877 crore, followed by IDBI Bank at ₹2,573 crore and State Bank of India at ₹2,316 crore.