26 June 2019: The National Company Law Appellate Tribunal on Wednesday directed the lenders of Amtek Auto Ltd. to consider insolvency resolution plans submitted by Deccan Value Investors and others, based on the original information memorandum inviting bids.
A two-member NCLAT bench, headed by Chairman Justice SJ Mukhopadhaya, slammed Amtek Auto’s committee of creditors for issuing fresh information memorandum inviting new resolution plans. “We have not allowed the committee of creditors or resolution professional to issue fresh information memorandum or invitation calling for more applications,” said NCLAT.
On June 13, resolution professional of the debt-ridden auto components maker had issued a fresh information memorandum inviting fresh submission of resolution plans.
The CoC has received 5-6 fresh expressions of interest after NCLAT’s May 20 order.
Clarifying its earlier order passed on May 20, NCLAT asked CoC to consider the bids submitted on the basis of the previous information memorandum. “In view of such interim order, the CoC is required to consider the resolution plan, if any, filed by any persons including the one submitted by Deccan Value Investors,” said NCLAT.
Deccan Value Investors was the second highest bidder for Amtek Auto with a Rs 3,150 crore offer. NCLAT also allowed Deccan Value Investors to modify and improve its offer after negotiation with the CoC.
“However, it will be open to the committee of creditors to negotiate and ask the resolution applicants to improve their plan in terms of the original information memorandum,” said NCLAT.
Earlier, U.K.-based Liberty House was chosen as the highest bidder for Amtek Auto but it later backed out and refused to furnish the bank guarantee for the acquisition.