A special resolution was put forth to shareholders proposing issuance of equity shares to corporate debt restructuring lenders by converting the latter’s outstanding loans to the company as part of the strategy debt restructuring scheme, the Business Standard reported.
The 22 lenders consortium – led by ICIC Bank – had proposed acquisition by converting 51% of the INR163.97bn ($2.46bn) debt into equity which will allow them to take control of the company’s management.
ABG Shipyard’s corporate debt restructuring was approved back in March 2014. The shipbuilder has been bogged down by challenging business environment and has failed to make much progress on improving its finances.
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