NCLT Appoints Resolution Professional For Amtek Auto Insolvency Process
Insolvency proceedings, initiated by a consortium of banks led by Corporation Bank, has been accepted by the NCLT.
The National Company Law Tribunal (NCLT) on Thursday appointed an interim resolution professional to carry out the insolvency process of debt-ridden auto component maker Amtek Auto, according to a regulatory filing.
"NCLT, Chandigarh has today...appointed Dinkar Tiruvannadapuram Venkatsubramanian as an interim resolution professional (IRP) for carrying out the CIRP (corporate insolvency resolution process) of the company," Amtek Auto said in the filing.
Insolvency proceedings against the company, initiated by a consortium of banks led by Corporation Bank, has been accepted by the NCLT.
Bankruptcy proceedings have also been initiated against other companies, including Electrosteel Steel, Lanco Infratech and Jyoti Structures Ltd, which are among the 12 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 non-performing assets. 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.