Bharati Shipyard turns sick

NEW DELHI: Bharati Shipyard today said it has turned into 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 sector player said in a BSE filing.

"The Company's Net Worth as on March 31, 2015 as per Audited Accounts presented before the Board has been eroded fully, hence as per definition under section 3(1)(0) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) the Company has become a Sick industrial Company," it said.

The company said it had filed a reference with the Board for Industrial & Financial Restructuring (BIFR) under provisions of the Sick Industrial Companies Act (SICA).

Subsequently, the Company's reference has been permitted and registered by BIFR under sections of SICA," it said.

"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.

Late last year, many lenders sold around Rs 8,500 crore worth loans that were given to Bharati Shipyard to Edelweiss ARC.

Shares of the company closed at Rs 17.35 apiece on the BSE, up 4.83 per cent from the previous close.