Amtek Auto’s Creditors Said To Agree To 78% Haircut
Financial creditors to Amtek Auto Ltd. have approved a resolution plan submitted by Deccan Value Investors.
The stressed auto parts maker informed the exchanges that its committee of creditors had voted in majority for the plan submitted by Deccan Value Investors through a voting process between Feb. 7-11.
The resolution applicant, according to a person in the know, has offered Rs 2,700 crore to the financial creditors as part of the plan. Of this, Rs 500 crore would be offered upfront while Rs 1,800 crore will be repaid through future receivables over time. Deccan Value will also offer Rs 300 crore through convertible debentures over seven years, the person said. The person spoke on the condition of anonymity as the discussions are confidential.
Dinkar V, the resolution professional for Amtek Auto, had admitted claims worth Rs 12,300 crore from financial creditors, according to data available on the company’s website. The resolution plan implies a 78 percent haircut for the financial creditors.
The resolution professional didn’t respond to calls from BloombergQuint. Corporation Bank, the lender that had filed the insolvency petition against Amtek Auto, wasn’t immediately available for comment.
Amtek Auto was one of the 12 large corporate accounts shortlisted for immediate insolvency proceedings by the Reserve Bank of India in June 2017. The company has already been through a failed resolution process where Liberty House UK, which had received a nod from lenders and the National Company Law Tribunal in 2018 to implement a resolution plan, backed out. The resolution process was restarted last year after a lengthy judicial process.