Aban Offshore Limited has informed the Exchange about Corporate Insolvency Resolution Process
Awaiting price reaction for this filing.
Aban Offshore Limited has informed the stock exchange that the Corporate Insolvency Resolution Process has been initiated against the company, likely following an admission order by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC). A resolution professional is expected to take over the management of the company, and the existing board's powers would typically be suspended during this period. The company's financials were already under severe stress, with significant debt and continuous losses reported in recent years, making it vulnerable to creditor action. Aban Offshore, once one of India's largest offshore drilling service providers, has been struggling for several years due to low crude oil prices, high debt, and asset impairments.
This is a major negative event for shareholders — equity could be significantly diluted or wiped out depending on the resolution plan. Trading in the stock is likely to be suspended or face heavy volatility. Existing shareholders may end up with little to no value if lenders take over the company during resolution.