Aban Offshore Limited has announced the scheduling of its first Committee of Creditors (CoC) meeting, marking a significant step in the company's ongoing Corporate Insolvency Resolution Process (CIRP). This development comes as the offshore drilling services provider navigates through financial restructuring under the Insolvency and Bankruptcy Code, 2016.

Meeting Details

Key Points

• The meeting is set to be the inaugural gathering of the Committee of Creditors since the initiation of the CIRP.
• Shailesh Desai has been appointed as the Interim Resolution Professional to oversee the proceedings.
• The insolvency process is being conducted under the provisions of the Insolvency and Bankruptcy Code, 2016.

Implications

This meeting represents a crucial juncture for Aban Offshore Limited as it seeks to address its financial challenges. The Committee of Creditors will play a pivotal role in determining the company's path forward, potentially influencing its future operations and financial structure.

Company Background

Aban Offshore Limited, headquartered in Chennai, India, is known for its offshore drilling services. The company's entry into the CIRP indicates significant financial stress, likely impacted by the volatility in the oil and gas sector.

Stakeholders, including investors and creditors, will be closely monitoring the outcomes of this meeting, as it may provide insights into potential restructuring plans or resolution strategies for the company's financial situation.

As the insolvency process unfolds, further updates are expected regarding the company's financial health and potential turnaround strategies.

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.