 "ABG Shipyard tanks post clarification on loan repayment")
Shares of ABG Shipyard tanked nearly 20% to fresh 52-week lows of Rs 138 on the BSE in intra-day trades after the company said that the principal repayments of loans are yet to start.
“We wish to advise you that we are working within the framework of Corporate Debt Restructuring (CDR) Scheme and our principal repayments of loans are yet to start,” ABG Shipyard said, in clarification to a news report that had appeared in The Economic Times on May 15, 2015 titled ''ABG Defaults on Restructured Loan.” Therefore, the news article in 'Economic Times’ may be their views, it added.
According to reports, ABG Shipyard, a shipbuilder which had its Rs 11,000 crore loans restructured in 2014 due to stress in business, has missed payments to some banks which have classified the account as bad loans.
Since May 15, the stock has declined 24% from Rs 182 compared to a 2% rise in the benchmark S&P BSE Sensex.
The trading volumes on the counter have jumped more than five-fold, with a combined 1.56 million shares changing hands so far on the BSE and NSE.
At 1142 hours, the stock was down 11.5% to Rs 153 on the BSE.
“We wish to advise you that we are working within the framework of Corporate Debt Restructuring (CDR) Scheme and our principal repayments of loans are yet to start,” ABG Shipyard said, in clarification to a news report that had appeared in The Economic Times on May 15, 2015 titled ''ABG Defaults on Restructured Loan.” Therefore, the news article in 'Economic Times’ may be their views, it added.
According to reports, ABG Shipyard, a shipbuilder which had its Rs 11,000 crore loans restructured in 2014 due to stress in business, has missed payments to some banks which have classified the account as bad loans.
Since May 15, the stock has declined 24% from Rs 182 compared to a 2% rise in the benchmark S&P BSE Sensex.
The trading volumes on the counter have jumped more than five-fold, with a combined 1.56 million shares changing hands so far on the BSE and NSE.
At 1142 hours, the stock was down 11.5% to Rs 153 on the BSE.
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