Amtek could see fresh bidding as Liberty House fails to pay up

By: | Published: November 30, 2018 5:03 AM

The near-bankrupt Amtek Auto could well see a second round of bidding, as UK-based Liberty House Group (LHG) has failed to pay up according to the approved plan.

Amtek, Liberty House, Liberty House Group, Amtek Auto, Reserve Bank of India, MCLTThe NCLT, had on July 24, 2017, admitted Corporation Bank’s plea for initiation of the corporate insolvency resolution process against the Delhi-based auto component maker.

By, Mitali Salian

The near-bankrupt Amtek Auto could well see a second round of bidding, as UK-based Liberty House Group (LHG) has failed to pay up according to the approved plan. Liberty was declared the successful bidder for the company in late July.
“A joint meeting of the lenders and the members of the monitoring committee (constituted in terms of the approved resolution plan) of Amtek Auto was held on November 19, where it was decided that the monitoring committee will file an application before the adjudicating authority to seek directions on the way forward, including but not limited to, seeking additional time to identify new resolution applicants for Amtek Auto,” the company said in an exchange filing on Thursday.

Amtek is one of the dozen companies referred by the Reserve Bank of India (RBI) to the insolvency court in June last year,
The Chandigarh bench of the National Company Law Tribunal (NCLT) on July 25 this year approved Liberty’s plan that had sought to pay financial creditors Rs 3,225 crore upfront and a fresh infusion of Rs 500 crore into the company for improving operations.

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The NCLT, had on July 24, 2017, admitted Corporation Bank’s plea for initiation of the corporate insolvency resolution process against the Delhi-based auto component maker. Although four parties initially evinced interest in buying the firm, Liberty outbid Deccan Value Investors to emerge as the preferred bidder. Amtek’s total dues to lenders at the time of being was admitted by the NCLT were Rs 12,603 crore while the liquidation value of its assets was determined at Rs 4,119 crore. Liberty’s bid was approved by the lenders on April 4, 2018 through a 94.2% vote and it also received the approval of the Competition Commission of India on November 6.

However, Liberty had failed to meet its commitment as per the approved plan following which lenders and members of the monitoring committee, including resolution professional Dinkar Venkatasubramanian, met on November 19 to discuss the future course of action. When contacted, Liberty did not offer any comment. However, after the Chandigarh bench’s approval, the company had said, “Following the NCLT go-ahead for Amtek Auto resolution plan, Liberty House is set for a major automotive growth. It is a very significant moment for Liberty House and GFG Alliance. We are very excited about the opportunity to restore a great Indian business to its rightful position and add a major new asset portfolio to our international network.”

The near-bankrupt Amtek Auto could well see a second round of bidding, as UK-based Liberty House Group (LHG) has failed to pay up according to the approved plan. Liberty was declared the successful bidder for the company in late July.
“A joint meeting of the lenders and the members of the monitoring committee (constituted in terms of the approved resolution plan) of Amtek Auto was held on November 19, where it was decided that the monitoring committee will file an application before the adjudicating authority to seek directions on the way forward, including but not limited to, seeking additional time to identify new resolution applicants for Amtek Auto,” the company said in an exchange filing on Thursday.

Amtek is one of the dozen companies referred by the Reserve Bank of India (RBI) to the insolvency court in June last year,
The Chandigarh bench of the National Company Law Tribunal (NCLT) on July 25 this year approved Liberty’s plan that had sought to pay financial creditors Rs 3,225 crore upfront and a fresh infusion of Rs 500 crore into the company for improving operations.

The NCLT, had on July 24, 2017, admitted Corporation Bank’s plea for initiation of the corporate insolvency resolution process against the Delhi-based auto component maker. Although four parties initially evinced interest in buying the firm, Liberty outbid Deccan Value Investors to emerge as the preferred bidder.

Amtek’s total dues to lenders at the time of being was admitted by the NCLT were Rs 12,603 crore while the liquidation value of its assets was determined at `4,119 crore. Liberty’s bid was approved by the lenders on April 4, 2018 through a 94.2% vote and it also received the approval of the Competition Commission of India on November 6.

However, Liberty had failed to meet its commitment as per the approved plan following which lenders and members of the monitoring committee, including resolution professional Dinkar Venkatasubramanian, met on November 19 to discuss the future course of action.

When contacted, Liberty did not offer any comment. However, after the Chandigarh bench’s approval, the company had said, “Following the NCLT go-ahead for Amtek Auto resolution plan, Liberty House is set for a major automotive growth. It is a very significant moment for Liberty House and GFG Alliance. We are very excited about the opportunity to restore a great Indian business to its rightful position and add a major new asset portfolio to our international network.”

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