BackSeveral financial, strategic investors still interested in Amtek Auto, says RP
'We have received several new EOIs in the last 2-3 months and hope to convert these into valid bids soon''We hope to complete the process within the court-mandated timeline'
PremiumMumbai: Lenders to bankrupt auto component maker Amtek Auto have received 7-8 new expressions of interest in the last couple of months, after the initial takeover plan by Liberty House failed. The resolution professional in the case told Mint that financial and strategic investors have made enquiries into the plant and the resolution process.
"We have received several new EOIs in the last 2-3 months and hope to convert these into valid bids soon," Dinkar Venkatasubramanian, the resolution professional on the Amtek Auto case, told Mint. "We hope to complete the process within the court-mandated timeline."
On Tuesday, the Supreme Court said the resolution process for Amtek Auto can be restarted, although the company has crossed the 270-day deadline under the Insolvency and Bankruptcy Code. The Supreme Court overruled a lower court order that the company head into liquidation. Now, lenders are hopeful that fresh takeover bids will help them recover more on outstanding loans.
The court told the committee of creditors that it has 31 days to seek bids and the resolution professional will have to choose the winning bidder within 2 weeks from then. The final decision should be presented before the court on 5 November.
The once-thriving auto parts maker owes about ₹12,603 crore to its lenders. London-based metals group Liberty House, led by Indian-origin businessman Sanjeev Gupta, backed out abruptly last year after placing the winning bid of ₹4400 crore for Amtek. Lenders have sued Liberty House and want the firm banned in the future for any resolutions under IBC.
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