Gammon India To Revive EPC Works If Resolution Plan Is Accepted
Infrastructure firm Gammon India Ltd. on Monday said it will revive its engineering, procurement, construction plans in irrigation, water supply and government-backed projects if its resolution plan is accepted by lenders.
The company, whose currennt liabilities at the end of 2018-19 exceeded the current assets by Rs 6,174.16 crore, has submitted a debt resolution plan to lenders, according to Gammon India's Annual Report 2018-19.
Gammon India’s debt resolution plan is under consideration.
"We also hope that with the acceptance of the resolution plan the company will be able to revive its EPC plans in irrigation, water supply and various government-backed project on the basis of existing technological credentials," the report said.
"The company's priority is now to pursue arbitration and realisation thereof as well as to coordinate with various lenders so as to accept and implement the resolution proposal," it added.
Gammon's facilities with the corporate debt restructuring lenders are presently marked as non-performing asset since June 2017. It has Rs 3,270 crore pending arbitration claims to be recovered. The company is actively pursuing arbitration pending at various stages and hopes to receive favourable awards, the report said.
"Pursuant to the provisions of the RBI Circular dated June 7, 2019, on 'Prudential Framework for Resolution of Stressed Assets', the lenders entered and executed an Intercreditor Agreement to provide for ground rules for finalisation and implementation of the resolution plan," the report said.
Earlier this month, Gammon India said the publication of its financial results for the quarter and half year ended Sept. 30, 2019, has been delayed as it was undergoing a financial crisis and was facing difficulties in hiring employees.
"The company is also undergoing financial crisis and as a result the company is facing difficulties in attracting/hiring employees,” Gammon India had said in a BSE filing.
“This has delayed the preparation and finalization of accounts and hence publication of financial results for the quarter and half year ended Sept. 30, 2019, is delayed,” the company said, adding that it intends to publish the pending results at the earliest.