The Chandigarh Bench of the NCLT has admitted State Bank of India’s petition for bankruptcy proceedings against Amtek Auto Ltd on Monday..NCLT also approved the appointment of Dinkar Venkatasubramanian, a partner at EY, as the interim resolution professional, under Section 13 of the Insolvency and Bankruptcy Code, 2016. He will now take charge over the company and the board stands suspended for a moratorium period of 180 days. During this period, a committee of creditors will be formed to take various decisions listed in Section 28 of the Code..Amtek Auto is one of the 12 accounts identified by the Reserve Bank of India, that account for 25% of the gross NPAs, in its controversial press release dated June 13, 2017..Amtek Auto has total liabilities worth Rs. 14,000 crore. IDBI Bank and Corporation Bank are among the lenders. The auto parts maker had defaulted on bond repayments close to Rs. 800 crore in September 2015..Amtek Auto is the odd one out in the set of bad loans that have been referred to NCLT after the RBI order. Other companies are from the steel and power sector. After the insolvency petition was filed, two of its board members ghave resigned..Livemint reports that the firm did not object to the admission and requested the court to also consider its resolution plan.
The Chandigarh Bench of the NCLT has admitted State Bank of India’s petition for bankruptcy proceedings against Amtek Auto Ltd on Monday..NCLT also approved the appointment of Dinkar Venkatasubramanian, a partner at EY, as the interim resolution professional, under Section 13 of the Insolvency and Bankruptcy Code, 2016. He will now take charge over the company and the board stands suspended for a moratorium period of 180 days. During this period, a committee of creditors will be formed to take various decisions listed in Section 28 of the Code..Amtek Auto is one of the 12 accounts identified by the Reserve Bank of India, that account for 25% of the gross NPAs, in its controversial press release dated June 13, 2017..Amtek Auto has total liabilities worth Rs. 14,000 crore. IDBI Bank and Corporation Bank are among the lenders. The auto parts maker had defaulted on bond repayments close to Rs. 800 crore in September 2015..Amtek Auto is the odd one out in the set of bad loans that have been referred to NCLT after the RBI order. Other companies are from the steel and power sector. After the insolvency petition was filed, two of its board members ghave resigned..Livemint reports that the firm did not object to the admission and requested the court to also consider its resolution plan.
