The creditors of financially troubled Indian shipbuilding company ABG Shipyard have rejected a bid made by UK-based Liberty House Group, an industrial and metals company run by Indian British businessman Sanjeev Gupta, reports Economic Times.
Liberty House was the sole bidder for ABG Shipyard and it has been in negotiations to acquire the shipyard since last year. The group offered 5,200 crore ($794.4m) on a deferred payment basis, stretched over five to 10 years, for the yard. The bid also includes an up-front amount of 400 crore and issue of debentures.
The business plan submitted by Liberty House includes liquidating the pending ship orders and then pursuing a combination of shipbuilding and shipbreaking businesses.
ABG Shipyard, India’s largest private yard, has been in dire financial trouble for a long time and repeated efforts to get foreign investors interested have failed.