India’s ICICI Bank has initiated insolvency proceeding against Western India Shipyard, a subsidiary ship repair yard of ABG Shipyard.
Western India has outstanding debts of Rs130 crore ($20.5m). It has been given a deadline of January 12 to submit claims.
ABG Shipyard owns a 53% stake in Western India, and has tried to sell the yard since 2016. Lenders have a stake of around 12% in the yard.
ABG Shipyard itself is undergoing bankruptcy proceedings, and banks led by ICICI Bank have called for binding bids for the company. In October 2017, India’s maritime regulator also suspended ABG Shipyard’s shipowning unit PFS Shipping.