Amtek Auto’s Managing Director Resigns As Insolvency Looms
The board accepted John Flintham’s resignation due to his “unavoidable circumstances”.
Managing Director of Amtek Auto Ltd., John Ernest Flintham, has resigned effective from Friday, as the autoparts maker awaits its lenders' decision about sending the company to the insolvency and bankruptcy court.
The board of directors has approved resignation of Flintham due to his "unavoidable circumstances", the company said in a stock exchange filing. The board also accepted the resignation of Sanjiv Bhasin, an independent non executive director of Amtek Auto for the same reason as Flintham's.
The meeting of the board was to discuss the issue of Amtek Auto falling under the Insolvency and Bankruptcy Code, 2016. The Reserve Bank of India had identified Amtek as among the 12 distressed companies for immediate referral to the Insolvency and Bankruptcy Board.
Lenders of Amtek Auto are yet to reach a decision on the fate of the company. Amtek Auto had become a stressed asset for banks in 2015 after it also defaulted on the debt owed to bondholders. It has around Rs 14,000 crore worth of debt yet to be repaid, while the lenders have been trying to push the company to sell some of its assets and reduce the burden.
The automobile parts maker has agreed to sell a significant stake to financial investors and reorganise its business, but the plan is yet to materialise.
Shares of Amtek Auto Ltd. closed 0.4 percent lower, inline with the country's benchmark BSE Sensex which fell around the same.