NCLAT slams Amtek CoC for issuance of fresh information memorandum

By: |
Published: June 27, 2019 1:58:13 AM

The UK-based Liberty House had withdrawn its Rs 4,119-crore bid for Amtek Auto after being selected by the lenders.

nclt, nclatThe NCLAT had on May 20 asked the CoC to consider resolution plans in accordance with law and take a decision, but not to place their decision before the adjudicating authority, NCLT.

The National Company Law Appellate Tribunal (NCLAT) on Wednesday slammed the committee of creditors (CoC) of Amtek Auto for issuance of 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 the two-member NCLAT bench, headed by its chairperson, Justice SJ Mukhopadhaya.

The NCLAT had on May 20 asked the CoC to consider resolution plans in accordance with law and take a decision, but not to place their decision before the adjudicating authority, NCLT.
On June 13, the resolution professional (RP) of the debt-ridden auto component maker had issued a fresh information memorandum inviting fresh submission of resolution plans. The CoC has received 5-6 fresh expressions of interest (EoI) after the NCLAT’s May 20 order.

Clarifying its May 20 order, the NCLAT on Wednesday asked CoC to consider the bids submitted by the previous information memorandum. “The CoC is required to consider the resolution plan, if any, filed by any persons including resolution plan submitted by the Deccan Value Investors LP (DVI),” the NCLAT said on Wednesday.

Also read: Bid for BPSL: Lenders move NCLAT for quick approval to JSW Steel’s plan

The UK-based Liberty House had withdrawn its Rs 4,119-crore bid for Amtek Auto after being selected by the lenders. The UK-based company backed out later. DVI was the second highest with a bid of Rs 3,150 crore. The NCLAT also gave permission to DVI 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.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop