The reconciliation process of Amtech Auto will now be able to resume, as the Supreme Court issued a resolution to the Resolution Professional (RP) and the Committee of Lenders (COL) to issue fresh tenders to buy the debt-laden company within 21 days and within two weeks of that the deal is allowed to be completed. More than Rs 12,000 crore is stranded in lenders' Amtech Auto.
The lenders want to complete the resolution process (sale) of the company as soon as possible so that they do not cause further losses. Amtech's resolution process was approved by the National Company Law Tribunal last year. After this, the solution of the only bidder UK company, Liberty House, seemed successful, but the process was not completed till date, as Liberty House did not fulfill the payment commitment for Amtech.
According to news agency IANS, a special court has sent a summons to Sanjeev Gupta and three top officials of Liberty House for violation of the resolution process and asked them to appear in the court on 11 July. In response, Liberty House has accused the resolution professional and previous owners of Amtech Auto of misrepresenting the facts in the information memorandum.
In June 2017, the Reserve Bank released a list of 12 companies with large NPAs. Amtech was the 5th company in which NPA has been resolved. On this, the banks owed Rs 12,312 crore. According to the plan then banks will cut 75% hair on the loan. This means that banks get Rs 3,078 crore. Will meet soon The remaining Rs 9,234 crore will be forgiven. 224 crore of operational creditors on the company are outstanding.
Amtech Auto of Gurgaon, which manufactures car parts, told the stock exchanges that the IDBI-led bank's committee has approved the bid of Liberty House.
