Debt-laden ABG Shipyard which has been scouting for a strategic investor for quite sometime now is likely to get one by the end of current fiscal. Â´We need an investor for our existing projects which has a working capital requirement of Rs.500-700 crore,Â´
Mumbai-based ABG Shipyard, a shipbuilding company, is in the process of restructuring its long-term debts. The company has been facing liquidity issues since 2011 and global recession has dealt a severe blow as almost 70 per cent of its customers are Europeans.
ABG Shipyard, which has one shipyard each at Surat and Dahej with a total area of approximately 620,000 sq m, proposes to set up a third one at an unknown location in three phases in Gujarat. The company sent a proposal for the same during the Vibrant Gujarat Global Investors Summit 2013. Besides, the firm also plans to expand its facilities at Dahej and Magdalla in three phases, with an estimat
The liquidity condition of ABG Shipyard is facing continued stress owing to large work-in-progress inventory relating to oil rigs, India Ratings said. The shipyard is facing delay in executing a novation agreement with a large client and an associate company. Novation is the act of either replacing an obligation to perform with a new obligation, or replacing a party to an a
Mumbai-based defence shipyard Mazagon Dock (MDL) plans to enter into alliance with Pipavav Shipyard, Larsen and Toubro and ABG Shipyard to construct warships. Media reports suggest that the defence ministry would study the alliance of MDL with these private shipyards in order to ensure that there was no violation of rules framed
Net profit of ABG Shipyard declined more than 32 percent to Rs 32.8 crore during the quarter ending September 30, 2012 from Rs 48.4 crore in the year-ago period. Net sales of the private sector shipbuilder also declined to Rs 543.6 crore during the reporting period from Rs 571.6 crore in the year-ago period.