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Shares of Gammon Infrastructure Projects has locked at 5 percent lower circuit on termination of contract with APRDC.
The company's unlisted subsidiary Rajahmundry Godavari Bridge has terminated the concession agreement with (APRDC) Andhra Pradesh Road Development Corporation for project of bridge across Godavari river.
"It has served a notice of termination of the concession agreement in respect of its project for design, construction, finance, operation and maintenance of a 4.15 kms long four-lane major bridge across river Godavari along with 10.34 kms of total approach roads on either side of the bridge in the state of Andhra Pradesh on BOT basis on account of several breaches of the said concession agreement by APRDC, company said in release.
The project is operational since November, 2015 and has contributed Rs 57.89 crore to the consolidated revenue of the company for financial year 2017-18.
Consequent to serving of the termination notice, the termination payments aggregating to Rs 1123.37 crore has become due and payable by APRDC within 15 days of the termination notice.
Union Bank of India, one of the lenders for the project has, on July 9, 2018 initiated and served corporate insolvency resolution process against RGBL before the Hon'ble National Company Law Tribunal, Mumbai Bench (NCLT).
RGBL has represented to Union Bank of India to reconsider moving the proceedings before NCLT and explore better options in the interest of the project, lenders and all stakeholders.
At 10:30 hrs Gammon Infrastructure Projects was quoting at Rs 1.42, down Rs 0.07, or 4.70 percent on the BSE.
There were pending sell orders of 436,086 shares, with no buyers available.
Posted by Rakesh Patil
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