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Lenders fail to recover Rs 63,500 crore from ABG Shipyard, Lanco; want willful defaulter tag for promoters

The move comes after the lenders failed to recover dues worth Rs 63,500 crore

March 27, 2018 / 12:39 PM IST
ABG Shipyard Facility At  Surat

ABG Shipyard Facility At Surat

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It looks like ABG Shipyard and promoters of Lanco may soon join the list of wilful defaulters as the lenders of these two companies have initiated a process to tag the two firms as wilful defaulters, according to a report in The Economic Times.

“At a recent meeting among lenders it was decided to conduct forensic audit of the operations and financial transactions of both the companies — Lanco Infratech and ABG Shipyard,” said a person privy to the information. “This exercise is a prelude to declaring the promoters of Lanco and ABG Shipyard as wilful defaulters.”

The move comes after the lenders failed to recover dues worth Rs 63,500 crore.

Lenders will also conduct a forensic audit of the accounts of both the companies. If there is evidence of siphoning off of funds or fraudulent activities in the companies, they could face criminal prosecution, said the source.

Clarifying its position, ABG Shipyard issued a statement saying, “The question of being a wilful defaulter does not arise as the finances are not being controlled by the erstwhile promoters but the lenders and Resolution Professional.”


“The Resolution Professional has also conducted a forensic audit. The company has already gone through two audits and if the lenders want to initiate another forensic audit the company would co-operate with the lenders and the auditors as it had done in the past,’’ the statement added.

Ship builder ABG has received one bid from the UK-based metals group Liberty House, said a person familiar with the developments.

On the other hand, Lanco Infratech has received seven bids, including from Ingen Capital group, I Square Capital, Asia Advisors, Metro Asset Services, Penn Energy, Than Solar Power and Solar Land.
Moneycontrol News
TAGS: #Companies
first published: Mar 27, 2018 12:39 pm

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