Plans to revive ABG Shipyard, Alok Industries and Lanco could fail; lenders might liquidate firms
Plans to revive ABG Shipyard, Alok Industries and Lanco could fail, despite that fact that Alok received a bid from Reliance Industries (RIL).
Plans to revive distressed ABG Shipyard, Alok Industries and Lanco Infratech could fail, leading inevitably to the liquidation of the three companies that together owe lenders over Rs 1 lakh crore.
According to a report in The Economic Times, lenders are unwilling to accept offers for these three companies that involve substantial haircuts. The three accounts were among the 12 first large non-performing assets (NPAs) identified by the Reserve Bank of India (RBI) for resolution under the Insolvency and Bankruptcy Code (IBC), 2016.
On Wednesday, fresh bids were invited for ABG Shipyard under the insolvency law after lenders rejected an earlier resolution plan. ABG Shipyard is undergoing insolvency proceedings as per the orders of the National Company Law Tribunal (NCLT). Lenders, looking to recover Rs 17,000 crore from ABG, expect to receive resolution plans by 23 April, as per the notice. ABG Shipyard, incorporated in 1985, is the flagship company of the ABG group that has interests in shipping and cement sectors.
Earlier in the week, Reliance Industries said the its resolution plan for textiles maker Alok Industries was rejected by the Committee of Creditors (CoC). RIL had bid jointly with JM Financial.
In July 2017, the Ahmedabad bench of the NCLT admitted insolvency proceedings against the textile firm. A consortium of lenders, led by the State Bank of India (SBI), is claiming dues of over Rs 23,000 crore from Alok Industries.
Meanwhile, there seems to be very little interest for Lanco Infratech, which owes lenders Rs 51,505 crore. Some bidders are seeking assets of the company in pieces but not as a whole. Lanco Infratech has interests in roads and the power sector. It was promoted by L Madhusudhan Rao and L Rajagopal.
With inputs from PTI
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