Printer Friendly

India : ABG Shipyard in the PROCESS of recasting its long-term DEBT.

Shipbuilding company ABG Shipyard Ltd is in the process of recasting its long-term debt that forms the bigger chunk of its entire debt kitty. A senior executive with public sector bank said, The reference (to CDR) has been made recently. The sector (shipbuilding) is passing through bad phase due to economic slowdown and this has hit many units in this sector.

Under the company s annual report for the year ended March, ICICI Bank, State Bank of India, IDBI, Bank of India, Bank of Baroda and Punjab National Bank are included in the major lenders to the ship building company.

The development of ABG Shipyard availing the debt recast programme comes at a time when bankers are becoming increasingly wary of the peer, Bharati Shipyard's Rs 5,860-crore debt recast plan. Bharti Shipyard is facing liquidity issues since 2011, and the global recession dealt a severe blow as almost 70% of its customers are Europeans.

Last month, ratings agency India Ratings & Research downgraded ABG Shipyard Ltd's Rs 200 crore non-convertible debenture programme to default from 'IND BB-' earlier, citing delayed payments. Last year, the Rs 200 crore non-convertible debenture programme was rated A- by the agency. And the agency has also downgraded ABG Shipyard's long-term issuer rating to 'IND D'.

The downgrade shows ABG Shipyard's delays in repayments pertaining to the Rs 200 crore non-convertible debenture programme, said the agency. ABG Shipyard was experiencing tight liquidity for the past year driven by delays in getting milestone related payments from clients.

2013 Al Bawaba (Albawaba.com)

Provided by Syndigate.info an Albawaba.com company
COPYRIGHT 2013 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Mena Report
Date:Nov 7, 2013
Words:263
Previous Article:India : SOLARSIS completes installation of ROOFTOP solar PV SYSTEM for IIT.
Next Article:India : J&K Bank announces Mushtaq as its Chairman and CEO.
Topics:

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters