The Liberty House Group’s bid to acquire Amtek Auto moved a step forward as the debt-laden firm has submitted its resolution plan for approval with the Chandigarh bench of the National Company Law Tribunal (NCLT). In a filing to the Bombay Stock Exchange (BSE), Amtek Auto on Monday said, “pursuant to the provisions of Insolvency and Bankruptcy Code, 2016, the company has submitted the resolution plan with National Company Law Tribunal, Chandigarh Bench for approval.” The committee of Creditors of the company had approved the resolution plan submitted by the Liberty House Group, its highest bidder, on April 5.
According to the Insolvency and Bankruptcy Code (IBC), it is mandatory for the resolution professional to submit the resolution plan with the tribunal for its approval within 180 days of the admission of the insolvency plea. This can be extended for another 90 days. Public-sector lender Corporation Bank had filed insolvency petitions, under Section 7 of the Insolvency and Bankruptcy Code, before the tribunal which admitted the plea on July 24.
Amtek Auto defaulted on repaying Rs 824 crore loans granted by Corporation Bank. The company reported a net loss of Rs 1,624 crore in 2016-17 on the back of Rs 1,950 crore in revenues. Amtek Auto is among the 12 companies identified by the Reserve Bank in which banks have an exposure of more than Rs 5,000 crore and more than 60% of which has been recognised as NPAs. The RBI, had on June 13, had asked banks to refer these dozen troubled companies — with a combined debt of close to Rs 2.4 lakh crore — to NCLT, following several failed attempts at loan recovery.