ICICI converts ABG debt into 11% stake; banks get majority: Srcs

Lenders to ABG Shipyard have become majority shareholders in the company despite failure to invoke strategic debt restructuring (SDR) where lenders can take 51 percent control, reports CNBC-TV18.

The stake of all lenders put together went up to 60.15 percent from 49.15 percent after ICICI Bank, that heads the consortium of lenders, acquired 11.08 percent in the company on conversion of Compulsorily Convertible Preference Shares (CCPS) to equity.

Shareholders of the company had rejected an earlier SDR proposal at the recent AGM but sources say lenders were keen to bring in a new management and are now seeking permission from RBI to bring company under SDR.The lenders are also working with Rothschild to find a buyer in the company.

ABG’s total debt stands at nearly Rs 16,400 crore.Watch video for more ...