Valuation and Viability Assessment
Challenge
Action Taken
Tebma was a leading shipyard, building sophisticated DP II Vessels for off-shore industry, Tugs for Navy/Domestic Market etc. at Malpe, Udupi District in Karnataka.
Due to down-trend in crude prices, the lucrative orders dried up, for which the yard had geared up with huge investment. Hence, the yard was rendered bankrupt and filed for bankruptcy. The competent court appointed a Resolution Professional (RP) and a Valuer.
Accordingly, RP on his part initiated disposal by a two-bid system, Valuer on his part carried out asset assessment.
With a view to revive the yard for community development and employment opportunities, a comprehensive valuation and commercial viability study was carried out for one of the potential bidders who was keen on business diversification.
The valuation and viability report covered various following aspects :
- One completed high power (50 ton BP) multipurpose tug for major port, delivery cancelled due to contract complications on hard ground.
- One dynamic position II vessel (DP II vessel) for off-shore oil industry, afloat moored at berth, ready in all respects; buyer not forthcoming due to crude price crash.
- Three main sites,
- One large site with all ship building infrastructure, slip-way, auto blasting and coating facility, two berths for afloat work/mooring auto blasting and coating equipment, admin block, drawing office etc.
- One medium site with three dimensional bending machine auto welding, pre fabrication arrangement upto 250 tons, heavy duty cranes for handling pre fabrications and loading same onto barges.
- A fully computerised central store
- Inventory of engineering stores and spares.
- Few residential sites and buildings.
The difference between our valuation and court instructed valuation was less than 10% despite subjectivity of custom built assets/main site land lease.
However, due to lease technicalities, the captioned potential bidder withdrew based on our Valuation Report and commercial viability. Subsequently, a major public sector shipyard made the highest offer and was awarded the bid. Asset transfer and revival is under way.