Amtek Auto IRP seeks res­o­lu­tion plans from po­ten­tial in­vestors

Mint ST - - DEALS - BY GOPIKA GOPAKU­MAR gopika.g@livemint.com 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 Rs1,000 crore at the group level as on 31 March and group rev­enue of Rs2,000 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 Rs3,000 crore over the past five years as on 31 De­cem­ber 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 uti­liza­tion 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.

IN­DIA TO­DAY

Amtek Auto founder Arvind Dham.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.