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Aban Offshore: admission of insolvency application by tribunal
ByAinvest
Monday, Sep 1, 2025 6:19 am ET1min read
Aban Offshore: admission of insolvency application by tribunal
The National Company Law Tribunal (NCLT) has admitted an insolvency application filed by the Central Bank of India against Aban Offshore Ltd. The application, filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeks to initiate insolvency proceedings for the recovery of outstanding dues [1].Aban Offshore, an Indian multinational offshore drilling services provider headquartered in Chennai, has faced financial difficulties in recent years. In 2021, the company reported a consolidated net loss of Rs 1972.53 crore [2]. The company's services are mainly used by oil companies, particularly ONGC, and it has diversified into various industries including construction, wind energy, and IT-enabled services [3].
The insolvency application by Central Bank of India is a significant development for Aban Offshore. The bank had filed the application for recovery of outstanding dues, which led to the initiation of insolvency proceedings. However, in August 2022, Aban Offshore entered into a one-time settlement agreement with Central Bank of India, paying the outstanding principal of Rs 121.78 crore (equivalent to Rs 129 crore or US$15 million in 2023) [4]. Following the settlement, the Central Bank of India withdrew its insolvency case against Aban Offshore Ltd at the NCLT [5].
The admission of the insolvency application by the NCLT is a critical step in the process of resolving Aban Offshore's financial distress. The company's ability to navigate this challenge will be closely watched by investors and financial professionals. The outcome of the insolvency proceedings could have significant implications for the company's future operations and financial health.
References:
[1] https://en.wikipedia.org/wiki/Aban_Offshore
[2] https://en.wikipedia.org/wiki/Aban_Offshore
[3] https://en.wikipedia.org/wiki/Aban_Offshore
[4] https://en.wikipedia.org/wiki/Aban_Offshore
[5] https://en.wikipedia.org/wiki/Aban_Offshore
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