Amtek Auto to file petition seeking additional time to find new takers of the company
By EDITORIAL BOARD - INSOL INDIA Posted On : December 14, 2018
Upon failure of Liberty House Group to pay the amounts in terms of the approved resolution plan, the monitoring committee of Amtek Auto is considering filing a petition before the NCLT seeking additional time to find new resolution applicants for the debt-laden company. Liberty House Group was declared as the successful bidder for the company in July 2018 and the plan which provided payment of INR 3,225 crores and additional infusion of INR 500 crores was approved by NCLT, Chandigarh. The lenders are also cosindering to seek direction from the tribunal regarding initiation of proceedings against the defaulting bidder under Section 74(3) of the Code. The bidder is seeking extension of time for making payment from the lenders of Amtek Auto.
Amtek Auto is one of the twelve companies referred by the Reserve Bank of India to the NCLTs for initiation of insolvency resolution process. It had total dues of nearly INR 12,603 crores, however the liquidation value was only INR 4,119 crores. Liberty House’s offer was accepted by the lenders of Amtek Auto. Additionally, it was also granted approval by the Competition Commission of India. Failure of Liberty House to make payment may initiate a second round of insolvency resolution process for Amtek Auto.