ABG Shipyard Sept-qtr net loss widens to Rs 721 crore

Debt-laden ABG Shipyard on Tuesday said its net loss widened to Rs 720.76 crore for the quarter ended September.

The company had clocked a net loss of Rs 478.17 crore for the corresponding quarter of the previous fiscal, it said in a BSE filing.

Seeking to recover their loans worth about Rs 17,000 crore, lenders to ABG Shipyard have already put the company on the block.

Its total income from operations declined to Rs 2.32 crore during the period under review as against Rs 9.33 crore in the year-ago quarter.

Total expenses increased to Rs 435.33 crore during the quarter under review as against Rs 291.14 crore a year ago.

The lenders to the company -- a consortium of about two dozen banks, led by ICICI Bank -- have mandated SBI Caps for finding a buyer for their 51 per cent equity, which lenders got after conversion of debt.

The company last week said the lenders have shortlisted few "prospective bidders" for the company after invoking their right to change the ownership and 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.

In 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 SDR scheme.

ICICI Bank had acquired the highest 11.08 per cent stake in the company in October last year by exercising its option to convert CCPS into equity. The consortium of lenders had also restructured their loan in 2013 under CDR scheme.