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Bharati Shipyard to part-pay debt

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Abhijit LeleShubhashish Mumbai
Last Updated : Jan 21 2013 | 1:39 AM IST

Bharati Shipyard has confirmed that apart from Rs 2,854 crore of loans which it has applied to lenders for rolling over under the Corporate Debt Restructuring (CDR) scheme, it would have to continue to service another Rs 306 crore on the original terms lent.

The highest bit of this Rs 306-crore chunk was extended by Development Bank of Singapore. The other four lenders in this category were L&T Infrastructure Finance, Catholic Syrian Bank, Tata Capital and Sicom, partly owned by the government of Maharashtra.

P C Kapoor, managing director of Bharati Shipyard, said: "These (five) lenders are outside the purview of the CDR mechanism. They will not be subject to the provisions of the Final Restructuring Scheme. Thus, the company will meet the obligations as per the terms and conditions originally finalised."

The company refused to give details of the payment schedules to these lenders, saying these were confidential.Apart from total debt of Rs 3,250 crore (there are additional components to the above two), the company has non-fund dues of Rs 2,400 crore.

“These are the various letters of credit and bank guarantees issued by various lenders. These are not debt,” the company clarified.Kapoor had said, “A majority of our orders come from European markets, currently facing challenging times. However, we are in the process of delivering five vessels in the next six months. The debt restructuring will help us optimise costs and resources in the time to come.”The company has an order book of Rs 6,800 crore, to be put through by 2014. It is also in advanced stages of completion of new shipyards at Dabhol and Mangalore. These new capacities would be used for larger orders in the future, it said.

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First Published: Jan 14 2012 | 12:17 AM IST

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