In the bidding for ABG Shipyard, an Ahmedabad-based shipbuilding company which defaulted on over Rs 16,000 crore, UK-based Liberty House has become the sole bidder after Shapoorji Pallonji group withdrew from the race.
The insolvency process for the first 12 companies identified by the Reserve Bank of India (RBI) for immediate resolution has kick-off and biddings for several of which are currently undergoing. In the bidding for ABG Shipyard, an Ahmedabad-based shipbuilding company which defaulted on over Rs 16,000 crore, UK-based Liberty House has become the sole bidder after Shapoorji Pallonji group withdrew from the race, BTVi reported.
Mahindra & Mahindra, Shapoorji Pallonji Group and Liberty House owned by British industrialist of Indian origin Sanjeev Gupta were reported to be joining the race for ABG Shipyard’s auction last October. The companies had put the bid between Rs 3,000 crore and Rs 3,500 crore.
With Shapoorji Pallonji Group withdrawing from the race, Liberty House is reported to be the sole bidder for the shipbuilding company. There is no clarity on Mahindra & Mahindra’s involvement in the bidding as earlier reported.
Meanwhile, biddings for other companies including Bhushan Steel, Bhushan Power and Steel, Essar Steel and Monnet Ispat are also going on. Liberty House has also shown interest in bidding for Bhushan Power and Steel and is bidding for Amtek Auto as well. Tata Steel and JSW Group have also submitted bids.
For Monnet Ispat, JSW Group has become the sole bidder. However, lenders are reported to be seeking opinion on the family connections between the promoters of two companies. JSW’s promoter Sajjan Jindal is the brother-in-law of Monnet Ispat’s founder Sandeep Jajodia.
For Essar Steel, Laxmi Mittal’s ArcelorMittal and Numetal Mauritius, in which founders of the Essar group the Ruias are the minority partner, are in the race.
All these companies are among 12 companies identified by the RBI for an immediate insolvency resolution under the IBC last June. Of the 12, the NCLT admitted proceedings against 11, while the proceeding against Jaypee Infratech was stayed by the Supreme Court to protect homebuyers’ interest.
In December, the RBI identified 28 others for insolvency process and on Monday ordered a complete overhaul of stressed asset resolution by subsuming several schemes and giving a strict a 180-day timeline for debt-restructuring, failing which the lenders will have no choice but to move NCLT under the IBC.