Edelweiss Asset Reconstruction Company, part of private equity firm Edelweiss, has taken over management control of Bharati Shipyard. Edelweiss now controls 70% of the Indian yard’s debts.
Edelweiss is now looking to raise cash to pump into the struggling yard, whose history dates back to 1973.
A month ago plans were made to change the yard’s name to Bharati Defence and Infrastructure as part of a new business direction making warships for the Indian Navy.
Bharati Shipyard warned on July 22 that it has become a “sick industrial unit” after its net worth eroded completely as on March 31, 2015.
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.