National Company Law Appellate Tribunal Urges Lenders Of Amtek Auto To Consider Bids By Deccan Value Investors

Lenders of Amtek Auto have been asked by the National Company Law Appellate Tribunal (NCLAT) to consider resolution plans submitted by Deccan Value Investors (DVI) along with others based on the original information memorandum inviting bids.

The bench also criticized Amtek Auto’s committee of creditors (CoC) for issuance of fresh information memorandum inviting new resolution plans.

On June 13, the resolution professional of the debt-ridden auto component maker had issued a fresh information memorandum inviting fresh submission of resolution plans.

The NCLAT asked Amtek’s lenders to consider bids submitted by the previous information memorandum, clarifying its earlier order on May 20.

It stated that in view of such an interim order, “the CoC is required to consider the resolution plan, if any, filed by any persons including resolution plan submitted by DVI”.

Incidentally, DVI was the second highest with a bid of Rs 3,150 crore.

The tribunal also gave liberty to DVI to modify as well as improve its offer after negotiation with Amtek’s CoC.

Earlier, the UK-based Liberty House had withdrawn its Rs 4,119-crore bid for Amtek after being selected by lenders.

It had backed out and refused to furnish the bank guarantee despite emerging as the highest bidder.