28 March 2019: Lenders of Amtek Auto Thursday sought permission from the NCLAT to conduct a second round of bidding for the debt-ridden auto component maker after the highest bidder UK-based Liberty House backed out.
The Committee of Creditors (CoC) led by Corporation Bank informed the National Company Law Appellate Tribunal (NCLAT) that the second highest bidder Deccan Value Investors LP is also considering to submit a revised offer.
However, an NCLAT bench headed by Chairman Justice S J Mukhopadhaya said it would like to hear Deccan Value Investors and Amtek Auto’s former promoters on the matter.
NCLAT listed the matter for next hearing on April 22 and said “CoC would not approve any other plan” in between.
It also said the Resolution Professional (RP) will continue to function and would “ensure that the company remains a going concern.”
According to reports, Deccan Value Investors, which had emerged as the second highest resolution applicant for Amtek Auto, had placed a bid of Rs 3,150 crore.
Amtek Auto has a total debt of Rs 12,603 crore and the liquidation value of its assets was determined at Rs 4,119 crore.
Liberty House had offered Rs 4,025 crore, including upfront payment of Rs 3,225 crore and a fresh infusion of Rs 500 crore for stabilising and improving operations.
However, Liberty House backed out of the process.
Earlier this month, NCLAT had allowed the withdrawal of Liberty House’s bid for ARGL, an Amtek subsidiary.
Amtek is an integrated auto component manufacturer with operations across forging, iron and aluminium casting, machining and sub-assemblies.
In July 2017, NCLT had admitted insolvency proceedings initiated by a consortium of banks led by Corporation Bank.