Amtek Auto Proceeds for liquidation, company debt ₹12,600 crore

The National Company Law Appellate Tribunal (NCLAT) has ordered the liquidation of auto parts maker Amtek Auto, which has a debt of about ₹12,600 crore. It turned down a plea by the lenders for a new round of bidding after highest bidder Liberty House backed out. The liquidation value of Amtek Auto's assets has been determined at ₹4,119 crore.

NCLAT has asked the Chandigarh Bench of the NCLT to proceed with the liquidation of Amtek Auto saying there remained no approved resolution plan for the company despite the passage of the statutory period of 270 days.

“As we have noted that more than 270 days have been completed much earlier and no case is made out to exclude any period, we hold that the adjudicating authority has no other option but to pass the order of liquidation,” a two-judge Bench, headed by Chairperson Justice S J Mukhopadhaya said.

“We are of the opinion that before referring any matter to the Insolvency and Bankruptcy Board of India or the central government, the tribunal is required to provide a reasonable opportunity of hearing to the parties concerned or alleged offenders of provisions and if satisfied may request the central government to investigate the matter by an inspector or inspectors,” the NCLAT said.

Amtek Auto has a debt of Rs 12,603 crore. The liquidation value of its assets was determined at Rs 4,119 crore. However, when the committee of creditors (CoC) and the resolution professional (RP) of Amtek Auto moved applications for the implementation of the resolution plan.