The Ahmedabad bench of the National Company Law Tribunal (NCLT) on Tuesday admitted the insolvency petition against ABG Shipyard filed by ICICI Bank under the Insolvency and Bankruptcy Code (IBC). The bench has appointed Sundaresh Bhat of BDO India, as the interim resolution professional (IRP).The company owes banks close to `10,000 crore, of which ICICI Bank alone had loaned about Rs 4,500 crore.
With the NCLT admitting ICICI Bank’s petition against ABG Shipyard, the company’s board of directors will be dissolved. Under IBC, the IRP gets 180 days to submit a restructuring plan for the company and the timeline can be extended by another 90 days. If the company fails to come up with a solution within the specified time, it would be liquidated. The resolution plan will have to be approved by the committee of creditors by a 75% majority and submitted to the NCLT. ABG Shipyard is part of the 12 large defaulters identified by Reserve Bank of India (RBI) based on a criteria of at least Rs 5,000 crore worth of debt exposure, of which 60% being classified as non-performing.
Companies like Alok Industries, Jyoti Structures, Monnet Ispat, Electrosteel Steels, Amtek Auto, and Bhushan Steel, Bhushan Power & Steel among others, have been admitted by different benches of the NCLT. Meanwhile, another 20 unsecured creditors have filed an insolvency petition against ABG Shipyard at Gujarat High Court (HC).