Bharati Shipyard board okays name change to reflect focus on defence sector

Board also approves issuance of convertible warrants to lenders

Bharati Shipyard board on Friday approved change of name of the company to Bharati Defence And Infrastructure Limited in turn highlighting the company's focus on the segment going ahead.

In a notification to the exchanges, the shipbuilding company said its board has also approved issuance of convertible warrants to the lenders.

Last week, debt-laden Bharati Shipyard said it has filed a reference with the Board for Industrial and Financial Reconstruction (BIFR), since it has become a sick company after eroding its entire net worth.

In a filing to BSE, Bharati Shipyard said that, as per audited accounts presented before the board, its net worth has been fully eroded as on 31 March. Hence, under section 3(1)(0) of the Sick Industrial Companies (Special Provisions) Act, 1985, it is a sick industrial company.

Edelweiss Asset Reconstruction Company, which has taken over the major portion of the Bharati Shipyard's debt from the financing banks, is assisting it in the revival by way of restructuring and additional lending.