Amtek case: NCLT reserves order on Liberty House eligibility

By: | Published: June 7, 2018 4:59 AM

The committee of creditors (CoC) in March 2018 identified Liberty House as the highest bidder.

amtek case, NCLT, liberty houseThe Chandigarh bench of the National Company Law Tribunal (NCLT) has reserved its order on whether Liberty House was eligible to bid for the bankrupt auto-component firm, Amtek Auto.

The Chandigarh bench of the National Company Law Tribunal (NCLT) has reserved its order on whether Liberty House was eligible to bid for the bankrupt auto-component firm, Amtek Auto. Amtek Auto was admitted for insolvency on July 24, 2017, and the US-based Deccan Value and UK-based Liberty House were the two bidders for its assets.

The committee of creditors (CoC) in March 2018 identified Liberty House as the highest bidder. However, in April the resolution professional, Dinkar Venkatasubramanian, moved the Chandigarh bench of the NCLT seeking direction whether Liberty House was eligible to bid for Amtek Auto.

This was based on reports that Liberty House had defaulted on loan repayments in another company and hence, under the IBC guidelines, was not eligible to bid. Amtek Auto owes in excess of Rs 10,000 crore to the lenders, according to the counsel of one of the banks seeking to recover its dues.

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