NCLT Order Copy IBC.
Awaiting price reaction for this filing.
The National Company Law Tribunal (NCLT), Chennai Bench, has admitted a Section 7 petition filed by Punjab National Bank against Aban Offshore Ltd under the Insolvency and Bankruptcy Code (IBC), 2016. This formally initiates the Corporate Insolvency Resolution Process (CIRP) against the company, which is engaged in offshore drilling of crude oil and gas. Headway Resolution and Insolvency Services Pvt. Ltd. has been appointed as the Interim Resolution Professional (IRP). The admitted default relates to a loan of approximately Rs. 1,062.86 crore, which was classified as a Non-Performing Asset (NPA) on 2 May 2017. Aban Offshore, incorporated in 1986, also has significant outstanding debt to other lenders including SBI, ICICI Bank, IDBI Bank, IOB, LIC, and DBS (formerly LVB). The company had been attempting to settle through One-Time Settlement (OTS) offers, with the latest offer of Rs. 123 crore in May 2024, which the bank rejected.
This is a highly negative development for shareholders. With CIRP initiated, a moratorium on all recovery actions is in effect, the IRP may take over management, and the existing equity could face significant dilution or even become worthless depending on the resolution plan and outcome. The stock is likely to see sharp negative price action, and trading may be restricted by exchanges under insolvency-related rules.