Bharati Shipyard loans: Edelweiss calls for debt aggregation

Citing trouble it was facing with Bharati Shipyard loans, Edelweiss Asset Reconstruction Company on Tuesday said there was a need for debt aggregation for smoother resolution of stressed assets.

“We have taken over 70 per cent of the loans of Bharati Shipyard and the remaining 30 per cent are spread across 10 banks. This creates problems in the resolution of assets as bringing all the lenders together is an issue,” said Managing Director and Chief Executive Sibi Anthony, during a seminar here.

He says in the absence of the same, there is a need for all the lenders to come forward on debt aggregation and ensure that the player most interested in turning around the asset gets complete freedom to do so.

It can be noted that Edelweiss ARC has been buying over stressed loans of lenders from banks since last year and is now planning a Rs 4,500 crore restructuring for the ailing company.

Reserve Bank deputy governor R Gandhi acknowledged the difficulties faced by the ARCs like Edelweiss.

"Many times, sale of debts of a single borrower to a single SC (securitisation company) or RC (reconstruction company) may not be possible, sale of entire debt of one borrower to a single SC/RC would help in effective and efficient resolution," he said.