NCLAT asks Amtek Auto lenders to consider the resolution plans submitted by Deccan Value Investors

NCLAT bench slammed the committee of creditors (CoC) of Amtek Auto for issuance of fresh information memorandum inviting new resolution plans.

Press Trust of India June 26, 2019 17:53:03 IST
NCLAT asks Amtek Auto lenders to consider the resolution plans submitted by Deccan Value Investors
  • The CoC has received 5-6 fresh expressions of interest (EoI) after the NCLAT's 20 May order

  • Clarifying its earlier order passed on 20 May, NCLAT asked CoC to consider bids submitted by previous information memorandum

  • The appellate tribunal also gave liberty to DVI to modify and improve its offer after negotiation with the CoC

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Wednesday asked the lenders of Amtek Auto to consider the resolution plans submitted by Deccan Value Investors (DVI) along with others based on the original information memorandum inviting bids.

Besides, a two-member NCLAT bench, headed by Chairman Justice SJ Mukhopadhaya, 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 NCLAT.

On 13 June, the resolution professional (RP) of the debt-ridden auto component maker had issued a fresh information memorandum inviting fresh submission of resolution plans.

NCLAT asks Amtek Auto lenders to consider the resolution plans submitted by Deccan Value Investors

Representational image. Reuters

The CoC has received 5-6 fresh expressions of interest (EoI) after the NCLAT's 20 May order.

Clarifying its earlier order passed on 20 May, NCLAT asked CoC to consider the bids submitted by the previous information memorandum.

"In view of such interim order, the CoC is required to consider the resolution plan, if any, filed by any persons including resolution plan submitted by DVI," said NCLAT.

DVI was second highest with a bid of Rs 3,150 crore.

Meanwhile, the appellate tribunal also gave liberty 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.

Earlier, the UK-based Liberty House had withdrawn its Rs 4,119-crore bid for Amtek Auto after being selected by the lenders but later it backed out and refused to furnish the bank guarantee after emerging as the highest bidder.

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