Bharati Shipyard Loans: Edelweiss Calls for Debt Aggregation

Published: 15th September 2015 05:53 PM  |   Last Updated: 15th September 2015 05:53 PM   |  A+A-


MUMBAI: Citing troubles it is facing with the Bharati Shipyard loans, Edelweiss Asset Reconstruction Company today said there is a need for debt aggregation for smoother resolution of stressed assets.      

"We have taken over 70 per cent of the loans of Bharati Shipyard and the remaining 30 per cent are spread across 10 banks. This creates problems in the resolution of assets as bringing all the lenders together is an issue," its managing director and chief executive Sibi Anthony said speaking at a seminar here.  

He said in the absence of the same, there is a need for all the lenders to come forward on debt aggregation and ensure that the player who is most interested in turning around the asset gets complete freedom to do so.    

It can be noted that Edelweiss ARC has been buying over stressed loans of lenders from banks since last year and is now planning a Rs 4,500 crore restructuring for the ailing company.      

Reserve Bank deputy governor R Gandhi acknowledged the difficulties faced by the ARCs like Edelweiss.    

"Many times, sale of debts of a single borrower to a single SC (securitisation company) or RC (reconstruction company) may not be possible, sale of entire debt of one borrower to a single SC/RC would help in effective and efficient resolution," he said.

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