Debt-ridden auto component maker Amtek AutoBSE -2.57 % today said insolvency proceedings initiated by a consortium of banks led by Corporation Bank has been accepted by the National Company Law Tribunal (NCLT).
“The application filed by Corporation Bank under section 7 of the Insolvency and Bankruptcy Code, 2016… before NCLT, Chandigarh has been admitted by the tribunal,” the company said in a BSE filing.
Bankruptcy proceedings have also been initiated against other companies including Electrosteel Steel and Lanco Infratech and Jyoti Structures Ltd which are among the 12 NPA or bad loan cases identified by the Reserve Bank of India.
The 12 accounts alone constitute a quarter of the over Rs 8 lakh crore of NPAs. Of the total, Rs 6 lakh crore are with public sector banks.
Once a case is admitted by the NCLT, there is a 180- day timeline to decide on a resolution plan, though 90 days can be given in addition. If a plan is not decided, then the company goes into liquidation.
The internal advisory committee (IAC) of the RBI, after its meeting on June 13, had recommended 12 accounts totalling about 25 per cent of the gross NPAs of the banking system for immediate reference under Insolvency and Bankruptcy Code.
