Bharati Shipyard admits it is a ‘sick industrial unit’

Bharati Shipyard admits it is a ‘sick industrial unit’

Mumbai: One of India’s top shipyards has conceded it is in a financially ruinous position. Bharati Shipyard warned today that it has become a “sick industrial unit” after its net worth eroded completely as on March 31, 2015.

Efforts are on for possible revival by way of restructuring and additional funding, the private yard said in a filing to the local stock exchange.

“Edelweiss ARC (Assets Restructuring Company), which has taken over major portion of the debts of the company from the financing banks, is assisting the company in the revival by way of restructuring and additional lending,” the filing said.

Edelweiss has in turn said it will pump INR6bn ($94.41m) into the yard.

Bharati Shipyard’s difficulties started five years ago when it bought Great Offshore. The company piled on debts from then on and has struggled to repay them.

 

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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