A Chandigarh bankruptcy court on Wednesday allowed a fresh round of bids to resolve Amtek Auto’s debt more than 18 months after the company was put into administration for its failure to repay about? 12,000 crore to lenders.
The National Company Law Tribunal (NCLT) was hearing a petition by the committee of creditors (CoC) to allow it to restart the bidding process after Liberty House, the winning bidder of the asset, refused to honour the terms of the offer, citing “serious issues” in the information shared with it during the bidding process.
The NCLT has granted the resolution professional (RP) an exclusion period of 140 days to re-do the insolvency resolution process, two people aware of the development told ET.
“The RP will most likely negotiate with the second highest bidder (H2) during the 140 days he has to close the resolution process,” said one of the persons cited above.
The second-highest bidder was US-based Deccan Value Investors. However, the fund which had also emerged as the successful bidder for Metalyst Forgings, an Amtek AutoNSE -3.51 % subsidiary, has also pressed an allegation against RP Dinkar Venkatasubramanian that the plan (for Metalyst) has been “vitiated” on the basis of “misrepresentation of facts”. Dinkar Venkatasubramanian is the RP for both assets.
Source: Economic Times