Promoters of the country’s second largest private ship-builder Bharati Shipyard have agreed to infuse Rs 118-crore fresh capital into the debt-laden company, as a precondition for its Rs 5,800-crore debt restructuring plan, sources said.
“The promoters of Bharati Shipyard have agreed to the lenders’ demand for a capital infusion of Rs 118 crore as part of its corporate debt restructuring (CDR) plan,” sources with direct knowledge of the development told PTI.
On June 1, the lenders’ consortium approved the Rs 5,800-crore CDR proposal of Bharati Shipyard.
“An empowered group of the consortium of lenders has agreed to recast Bharati Shipyard’s entire outstanding debt of Rs 5,800 crore, which is inclusive of both fund and non-fund based debt,” the sources said.
However, PTI could not confirm the development neither from Bharati Shipyard nor the bankers. Senior officials of Central Bank of India and IDBI Bank, when contacted, said they cannot share client-specific details.
The ship-builder has fund and non-fund based debt of Rs 5,800 crore from as many as 25 banks, including State Bank, Central Bank of India and IDBI Bank, among others. The lenders’ consortium is led by SBI.
Bharati Shipyard had a debt of Rs 3,861 crore in its balance-sheet during FY’12-end, and over Rs 2,000 crore of non-fund limits, taking the overall CDR scheme to Rs 5,800 crore.
Out of this, the fund-based debt of the shipyard is Rs 3,200 crore, while it has a working capital loan of around Rs 600 crore and the rest is non-fund-based limits.
The CDR scheme also involves converting 10 per cent of the outstanding term loan of Rs 2,600 crore into compulsorily convertible debentures, which will later be converted into fresh equity, as per the SEBI norms, the sources said.