ET: Amtek Auto reopens bankruptcy resolution process; invites fresh bids

14 June 2019: Cash-strapped company Amtek Auto started a fresh round of bidding process on Thursday, almost after two years of its first bankruptcy proceeding.

Headquartered in New Delhi the company is an auto and non-auto component manufacturer with operations across forging, aluminum casting, machining and sub-assemblies.

In a regulatory filing, the company said that prospective bidders can submit their resolution plans by 6 pm on June 28.

The move comes after the Chandigarh bench of the National Company Law Tribunal (NCLT) in February allowed Amtek’s creditors to start the resolution process from scratch.

Amtek Auto was one of the 12 large corporate defaulters that the Reserve Bank of India had identified in June 2017 for insolvency proceedings. It was dragged to the bankruptcy court by state-run Corporation Bank in July 2017. The company owes its financial creditors about Rs 12,300 crore. It also owes about Rs 206 crore to its operational creditors.

In March last year, the UK-based metals group Liberty House had emerged as the highest bidder for Amtek, winning a resolution anount of Rs 4,100 crore. Liberty House had offered Rs 3,225 crore affront and fresh infusion for stabilising and improving operations to the tune of Rs 500 crores.

Besides Liberty, Amtek had attracted a bid from US-based employee-owned hedge fund sponsor Deccan Value Investors.

However, Amtek’s resolution professional Dinkar Venkatasubramanian questioned Liberty’s suitability to buy the auto components maker because it itself owed money to creditors. While the NCLT approved Liberty’s bid, the UK-based company failed to honour its payment commitments.

The Economic Times reported

Categories: General News, India Bankruptcy

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