“A majority of the total exposure of Rs 11,000 crore was for working capital purposes. It has been restructured; Rs 2,000 crore were long-term loans,” Dhananjay Datar, chief financial officer, told Business Standard. “We will get two years of moratorium for interest payment and after the moratorium, we have eight years to repay.”
Also, the banks will forgo Rs 900 crore, while the promoters of ABG Shipyard will be contributing Rs 230 crore. The promoters, ABG International, Rishi Agarwal and Kamlesh Kumar Agarwal will also be pledging their stake, a total of 69.12 per cent. As on December, ABG International had 68.39 per cent, Rishi Agarwal 0.55 per cent and Kamlesh Kumar Agarwal 0.18 per cent stake in the company. The rate has been revised to 11 per cent from 13.5 per cent. Additional funding has also been approved, with Rs 1,800 crore for working capital and Rs 300 crore as term loans. “There will be a lenders’ engineer monitoring our under-construction activities,” said Datar. “When we complete our shipbuilding orders, we will sell and repay our loans. Since the business cycle is picking up, we hope things will improve and orders from the defence and commercial side will move up.”
More From This Section
SOME RELIEF |
22 member lenders’ group approve debt restructuring Rs 900 cr The banks will forgo 11% is the rate from 13.5% 4% shares rise on previous day’s close to Rs 258 each on the BSE exchange on Friday |
In recent months, the ABG Group company has got orders from the navy worth Rs 970 crore.