ABG Shipyard allots 6.32cr CCPS to four lenders under CDR plan

ABG Shipyard today said it has allotted more than six crore compulsorily convertible preference shares (CCPS) to four lenders under its corporate debt restructuring plan.
The 6.32 crore CCPS were allotted to Lakshmi Vilas Bank, Punjab National Bank, State Bank of India and Oriental Bank of Commerce.
"The Security Issue Committee of the Board of Directors of the company has, at its meeting held on June 30, 2015, allotted 6,32,41,684 nos of 0.01 per cent CCPS of Rs 10 each at par value to the CDR lenders as per CDR package on preferential basis," ABG Shipyard said in a filing to the BSE.

The CCPS shall be fully paid-up at the time of allotment and shall be subject to the lock-in for a period prescribed under regulations, it added.
The maximum 4.97 crore CCPS were alloted to Punjab National Bank, followed by 1.09 crore to Oriental Bank of Commerce.
Twenty-four lakh CCPS were alloted to State Bank of India while 27,000 CCPS were allotted to Laxmi Vilas Bank, the company said.

"The CDR lenders shall be entitled to convert CCPS into the equity shares of the company in one or more tranches, it said.
ABG Shipyard is reported to be battling a heavy debt load as it aims to exit corporate debt restructuring (CDR) involving Rs 7,200 crore by the end of this fiscal.

Last month, BSE had sought clarification from ABG Shipyard on reports of defaults on restructured loans.
The company had replied: "We wish to advise you that we are working within the framework of the CDR scheme and our principal repayment of loans is yet to start."
Also, the company is scouting for investors to improve its finances and operational performance.
The country's largest private sector shipbuilding yard is in talks with Privinvest Holding, a major player in global naval, commercial vessels and super yacht industry, for a strategic stake sale.
Privinvest is expected to buy up to 49 per cent through fresh equity worth Rs 1,000 crore.

ABG Shipyard's net loss had widened to Rs 901 crore last fiscal as against Rs 222 crore in 2013-14.
The shares of the company closed 0.99 per cent down at Rs 185.30 apiece on the BSE.