AMW autocomp business up for sale?

Eight lenders who jointly took control of debt-laden AMW Auto Component Ltd—a unit of truck maker AMW Motors Ltd—in June 2016, have put it up for sale, claim industry sources. Sources claim that AMW

Auto Component had debt of Rs.724 crore as of March 31, 2016. They cite data from the company’s filings with the Registrar of Companies (RoC). In June 2016, the lenders converted some of their loans given to the company into equity under strategic debt restructuring (SDR), ending up with a 51 per cent stake. Claimed industry sources that the consortium, led by IDBI Bank Ltd, and including seven other stateowned banks, has taken over the company under the SDR mechanism. The consortium has initiated the process to seek a buyer for a controlling stake in the company. AMW Auto Component Ltd., with an installed capacity to manufacture 15 million wheel rims per year, reported a revenue of Rs.332.6 crore in FY2015-16 as against Rs.264.9 crore in the previous year, according to the data from RoC filings. In FY2015-16, it reported a loss of Rs.47 crore, as compared to a profit of Rs.72 lakh in the previous financial year.