Aban Offshore Limited , a prominent player in the offshore drilling sector, has entered Corporate Insolvency Resolution Process (CIRP) following an order by the National Company Law Tribunal (NCLT) Chennai on September 1, 2025. This development comes in response to a petition filed by Punjab National Bank, signaling significant financial challenges for the company.

Key Developments

• The NCLT has appointed Shailesh Bhalchandran Desai as the Interim Resolution Professional (IRP) on October 10, 2025.
• The company's financial health has deteriorated, with accumulated losses eroding its net worth.
• Current liabilities exceed current assets, indicating severe liquidity issues.
• Aban Offshore has defaulted on term loan installments and interest payments.

Financial Position

The company's precarious financial situation is evident from its latest quarterly results:

Audit Concerns

The company's auditors, Ford Rhodes Parks & Co. LLP, have expressed a qualified opinion due to:

• Non-receipt of bank balance confirmations for deposits of INR 147.21 million.
• Lack of confirmation for outstanding bank borrowings of INR 4,148.03 million from two banks.

These issues have prevented the auditors from ascertaining the accuracy of these balances and their impact on the financial statements.

Going Concern Issues

The auditors have highlighted material uncertainties that cast significant doubt on Aban Offshore's ability to continue as a going concern. The company's future may depend on:

1. Improvement in cash flows from normal operations
2. Timely monetization of assets
3. Outcome of the ongoing CIRP process

Implications and Outlook

The initiation of CIRP marks a critical juncture for Aban Offshore Limited. While it provides a structured process for potential resolution, it also indicates the severity of the company's financial distress. Stakeholders, including employees, creditors, and investors, will likely be closely watching the developments in the coming months.

The resolution process under the Insolvency and Bankruptcy Code will determine the future course for Aban Offshore. Potential outcomes could range from a successful restructuring to more drastic measures, depending on the decisions made during the CIRP.

As the offshore drilling sector continues to face challenges, Aban Offshore's situation underscores the importance of financial resilience and adaptability in a volatile market environment.

Aban Offshore Limited , a prominent player in the offshore drilling industry, has entered into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. This significant development comes following an order by the National Company Law Tribunal (NCLT), Chennai Bench.

Key Developments

1. Insolvency Process Initiation: The CIRP for Aban Offshore Limited commenced on September 1, 2025, as per the order no. CP(IB)/203/CHE/2024 passed by the NCLT, Chennai Bench.

2. Appointment of Interim Resolution Professional: Shailesh Desai has been appointed as the Interim Resolution Professional (IRP) for the company. The NCLT order appointing the IRP was dated October 10, 2025, and received by the IRP on October 14, 2025.

3. Board Suspension and Moratorium: Following the NCLT order, the Board of Directors of Aban Offshore Limited has been suspended, and a moratorium has been declared.

4. IRP's Role: The IRP will assume the roles and responsibilities previously held by the Board of Directors and various committees during the insolvency resolution process.

Regulatory Compliance

In light of the CIRP, Aban Offshore Limited has made the following announcements regarding regulatory compliance:

1. SEBI LODR Regulations: As per Regulation 15(2A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, provisions related to the Board of Directors (Regulation 17) will not be applicable during the insolvency resolution process.

2. Committee Functions: The roles of various committees, including the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee, will be fulfilled by the IRP or Resolution Professional (RP) as per Regulation 15(2B) of SEBI LODR Regulations.

Upcoming Financial Results

The IRP has scheduled a meeting to consider and approve the unaudited financial results for Aban Offshore Limited:

This development marks a critical juncture for Aban Offshore Limited as it navigates through the corporate insolvency resolution process. Stakeholders and investors will be closely watching the proceedings and their potential impact on the company's future operations and financial stability.