ABG Shipyard creditors reject bid from Liberty House

ABG Shipyard creditors reject bid from Liberty House

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.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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