New Delhi: The National Company Law Tribunal (NCLT) on Wednesday approved the bid of UK-based Liberty House to acquire the debt-ridden Amtek Auto.
The Chandigarh bench of the NCLT has approved the Liberty House bid on recommendation of the Committee of Creditors (CoC) of the company.
"The Adjudicating Authority (NCLT) has been pleased to approve the resolution plan submitted by Liberty House Group Pte Ltd," Amtek Auto informed BSE.
Amtek has a total debt of Rs 12,603 crores and the liquidation value of its assets was determined at Rs 4,119 crores. Liberty House has offered Rs 3,225 crore affront and fresh infusion for stabilising and improving operations to the tune of Rs 500 crores. The total resolution amount stands at Rs 4,025 crores.
"The total potential recovery by the Financial Creditors has been calculated at Rs 4,404 crore," NCLT has said in its orders.
It further said:"The resolution plan submitted by LHG Pte Limited is found to be in conformity with sub-section (2) of Section 30 of the IBC Code and the same is approved with the modification that the timelines given in the resolution plan shall stand extended during the period".
Amtek is one of the largest integrated auto component manufacturers in India with operations across forging, iron and aluminium casting, machining and sub-assemblies.
In July last year, NCLT had admitted insolvency proceedings initiated by a consortium of banks led by Corporation Bank.
Updated Date: Jul 26, 2018 12:08:26 IST