The Board Members of Bharati Shipyard Limited met to consider the reference made to the Corporate Debt Restructuring cell in its case. The Board has noted and discussed the proposal for restructuring of Term/Working Capital Debt of INR 2,854 crores out of a total debt of INR 3,250 crores.

Currently, the company has robust order book visibility worth INR 6,800 crores to be executed by 2014 and is in advance stages of completion of its two Greenfield shipyards at Dabhol and Mangalore. The floating dock facilities and the equipments that were bought from the famous British Shipyard, Swan Hunter are in advanced stages of commissioning. This will enhance the production capacity, which will be used to execute large orders going forward.

Mr PC Kapoor MD of Bharati Shipyard Limited said that "Majority of our orders come from the European markets, which is currently facing challenging times. However we are in the process of delivering 5 vessels in the next 6 months. The debt restructuring will help us to optimize costs and resources in the time to come."

In view of the overall sectoral slowdown and the economic challenging scenario in the European countries and the rising cost of capital, the company will undertake various initiatives to optimize the current resources. The overall shipping industry in India is under tremendous pressures, however BSL is confident of its business model and successfully weathering the current business challenges.

(Sourced from Equity Bulls)