Steel group Liberty House must clear an Indian debt before it can bid again for ABG Shipyard.
The UK-based company will have to pay $2.8m owed to Exim Bank ahead of a potential third bid for the bankrupt yard.
The debt scuppered its deal to acquire ABG this week under the insolvency and bankruptcy code, according to sources familiar with the issue cited by the Hindu Business Line.
"Liberty has been asked to pay the dues in full in order to become eligible to participate in the next round of bidding,” the source said.
“Liberty is likely to pay to participate in the new round of bidding,” he added.
Only bidder again?
Sanjeev Gupta-led Liberty had offered to pump INR 52bn ($798m) into the yard over a five to 10-year period, including INR 4bn upfront. It was the only bidder.
Its previous offer was rejected in March as below the liquidation value.
The deadline to sell the yard is 30 April.
If this fails, liquidation may follow, the value of which has been put at INR 22bn.
Liberty House wants to complete pending ship orders and then carry on with a combination of newbuilding and shipbreaking at the plant.
ABG's bankruptcy restructuring was approved by the NCLT last August.
Lender ICICI, which applied for the process, said the struggling yard had defaulted on INR 45bn of loans, which ABG confirmed.
