ABG Shipyard’s committee of creditors (CoC) has rejected two proposals of the company’s interim resolution professional (IRP), the company said in a regulatory filing on Tuesday. The committee rejected a proposal to ratify the cash flow summary statement for the period between September 4 and 24 and another to create a corpus fund.
However, the committee has approved the rest of the proposals including the appointment of PricewaterhouseCoopers and SBI Capital Markets as the process advisors and creation of a steering committee that can take certain decisions on behalf of the members of the CoC.
In August, the Ahmedabad bench of the National Company Law Tribunal (NCLT) had admitted the insolvency petition against the ABG Shipyard under the Insolvency and Bankruptcy Code (IBC) filed by ICICI Bank. The bench had appointed Sundaresh Bhat of BDO India, as the IRP.
ICICI Bank leads a consortium of 22 lenders that have lent ABG Shipyard `9,290 crore. In FY16, the company reported a net loss of Rs 3,705 crore on the back of Rs 34 crore in revenues. Its interest outgo stood at `857 crore in the same period.
ABG Shipyard is among the 12 companies referred to NCLT benches across the country following a nudge from the Reserve Bank of India (RBI). The RBI had on June 13 asked banks to refer a dozen troubled companies — with a combined debt of close to Rs 2.4 lakh crore — to the NCLT, following several failed attempts at loan recovery.
Meanwhile, ABG Shipyard’s corporate debt restructuring (CDR) was cleared by lenders in 2014. Under the CDR package, the company was given 10 years to repay the loan, with a moratorium on interest payments of two years. However, the recast had failed in January this year.