Debt-ridden ABG Shipyard Ltd may get its Rs 11,000 crore loan restructured before end of December as all its lenders are still to approve the proposal.
ICICI Bank, who is leading the lenders’consortium, has issued the flash report to other banks and is awaiting responses from the latter, a banking source close to the development told Business Standard today.
A flash report is a detailed report mentioning the causes leading to the stress the company is facing because of which it needs to restructure its loan. It also gives an outline of current financial health and a tentative frame work for support.
This report, however, requires nod from other lenders.
“Apart from ICICI Bank, State Bank of India has given the support letter for the flash report, but most lenders who are smaller banks are still to respond,” said the banking source.
There are total 23 banks who have lent to ABG Shipyard, one of the leading private shipbuilding companies in the country.
The flash report is the very initial stage of the process as to get support from all lenders takes a while, after which the debt restructuring package has to be drawn and then comes the approval from the CDR cell.
ABG Shipyard is seeking restructuring of its long-term debt which would involve giving more time for repayment, revision in interest rate, and obligation on part of promoters to chip in money among others.
