AMTEK AUTO IRP SEEKS RESOLUTION PROPOSAL

MUMBAI: The interim resolution professional (IRP) in charge of Amtek Auto Ltd has called for expressions of interest from potential investors to present a resolution plan under the insolvency and bankruptcy code (IBC).

In a public advertisement on Wednesday, the auto parts maker said that corporates with a minimum net worth of ₹1,000 crore at the group level as on 31 March and group revenue of ₹2,000 crore for the preceding three years are eligible to approach the IRP company with a plan.

Financial institutions, including private equity investors with minimum assets under management (AUM) of ₹3,000 crore over the past five years as on December 31, 2016 are also eligible to apply.

On 24 July, the National Company Law Tribunal (NCLT) had admitted the lead lender Corporation Bank’s petition to start insolvency proceedings against the company. The tribunal also approved the appointment of Dinkar Venkatasubramanian, a partner at consulting firm EY, as the IRP to carry out the operations of the company.

The auto parts maker is among 12 companies against whom lenders initiated insolvency proceedings following a Reserve Bank of India directive. Cases have been admitted by NCLT in 11 of these cases, with Era Infra Engineering Ltd being the only exception.

In an exchange filing on 16 August, Venkatasubramanian had said that after studying the records of the company, it appeared to him that Amtek Auto had been operating at a low capacity utilisation level and there was an immediate need for working capital.

He had also sought the cooperation of all creditors to keep the company as a “going concern” for a time-bound resolution and in order to maximize the value of the company.

According to IBC, Venkatasubramanian has to come up with a resolution plan within 180 days, extendable by another 90 days, of the admission of the petition.

In case the account is not resolved in the given time frame, the company goes into liquidation.