ABG Shipyard initiates liquidation process under IBC

Debt-ridden ABG Shipyard Monday announced commencement of the liquidation process under the Insolvency and Bankruptcy Code.

"NCLT vide order dated April 25, 2019...ordered commencement of liquidation of ABG and appointed...Sundaresh Bhat as the liquidator of ABG," debt-ridden firm said in a BSE filing.

ABG Shipyard is undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC, 2016) as per the NCLT orders.

"An application for initiation of CIRP under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by the financial creditor, ICICI Bank Limited, in the matter of ABG Shipyard Ltd was admitted by the National Company Law Tribunal, Ahmedabad Bench vide its order dated August 01, 2017 ordering commencement of CIRP," the filing said.

Thereafter, the committee of creditors of ABG approved by requisite voting majority liquidation of ABG and on that basis, an application under Section 33 of IBC was filed with the NCLT, it said.

ABG Shipyard owes about Rs 17,000 crore to the lenders.

The shipbuilder was referred by the Reserve Bank of India for bankruptcy resolution.

Incorporated in 1985, ABG Shipyard is the flagship company of ABG Group with interests in shipping and cement sectors.

It is one of the three private shipyards in India approved by the Indian Navy to build various types of naval vessels and has built several vessels for Indian defence sector.