Bharati Shipyard:

• 39 years in business
• 70% customers in Europe.
• Crisis in Europe : affecting lending to customers of Bharti Shipyard.
• CLEAR VICTIM OF CIRCUMSTANCES THAT ARE BEYOND ITS CONTROL.
• Liquidity Crisis.
• Leveraged buyout of Great Offshore Ltd : 49.73% bought in Dec 2009. Acquisition was rather strategic compulsion since GOL is one of the largest client of the company.
• Defaulted in payment of Rs.678 crores
• Reported to Croporate Debt Restructuring (CDR) cell – approved proposal like Conversion of certain debt into compulsory Convertible Debenture, Concession in interest and additional loans.
• Total Debt of Rs.5860 Cr from 25 lenders.
• No doubt – Bharti Shipyard is in trouble. But Investors can monitor the stock on continual basis and enter it at the opportune time.