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Lenders to recast Bharati Shipyard’s 3,900-crore loans

22 Dec 2011 Evaluate

Indian lenders are set to restructure close to Rs 3,900 crore loans of Bharati Shipyard, the country’s second largest private shipyard which has been weighed down by mounting debt after its acquisition of Great Offshore two years ago and a dismal order book position. Banks, led by State Bank of India, referred the company to the corporate debt restructuring (CDR) forum where lenders and borrowers mutually agree to restructure the terms of a loan to prevent the loan from being classified as a bad loan. For BSL, the acquisition of Great Offshore led to an escalation of its debt by Rs 1,300 crore.

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