For purchase consideration of Rs 659 cr
Welspun Corp announced that the Liquidator of ABG Shipyard has declared Welspun as a successful bidder in terms of the Process Memorandum for the private sale of specified assets of ABG Shipyard (in liquidation) under the provisions of the Insolvency & Bankruptcy Code, 2016 (IBC).In terms of Clause 6.8 of the Process Memorandum read with the Clause 2 of the Award Letter issued by the Liquidator, Welspun Corp and its wholly owned subsidiary has paid, on 21 September 2022, Rs. 659 crore (plus applicable taxes) towards the entire purchase consideration.
The partially built obsolete ships and scrap acquired under Welspun Corp is estimated to be over ~ 150,000 MT. It is estimated that its potential value would be unlocked within 12-15 months from completion of the acquisition.
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