Photo : Mint
Photo : Mint

Castex lenders propose strategic debt restructuring

Close to 23 banks have an exposure of Rs4,850 crore in Castex Technologies

Mumbai: Lenders of Castex Technologies Ltd, the debt-laden Amtek Auto Ltd firm, in a joint lending forum (JLF) has proposed a strategic debt restructuring (SDR), Castex said in a statement on Monday. It was in response to an article published in the Economic Times on 15 July 2016.

The proposed SDR, Castex said, is under consideration and subject to in-principal approval of lenders. Banks will take control of two subsidiaries of Amtek Auto that defaulted on bond repayment last year. Lenders have agreed in principle to take control of Castex Technologies and Metalyst Forging—the two listed subsidiaries of the auto component maker, the Economic Times reported, citing sources from banking circles. The banks led by IDBI Bank have agreed in principle to convert a part of their debt into equity, it said.

Close to 23 banks have an exposure of Rs4,850 crore in Castex Technologies, which reported a net loss of Rs466 crore in fiscal 2015-16.

Castex’s shares were up 4.96% at RsXX on the BSE at 10:14am, while the benchmark Sensex index was up 0.54% to 2798.39 points.

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