Liberty House emerges as top bidder for Amtek Auto
, TNN|
Updated: Mar 07, 2018, 11.14 AM IST
NEW DELHI: UK-based Liberty House has emerged as the top bidder for the beleaguered auto parts maker Amtek Auto, which has defaulted in payment of loans over Rs 12,500 crore. Liberty House managed to pip American hedge fund Deccan Value in the race for Amtek Auto, which has been under bankruptcy, following default in repayment, sources told TOI. However, it is yet not clear the extent of haircut the lenders will need to take as part of the deal to keep the company afloat.
Sources said the bids were discussed with the lenders on Tuesday and the committee of creditors is expected to announce its decision towards the end of this month.
“We have shortlisted a resolution applicant,” a source said, suggesting that the threat of liquidation — that had loomed large in the absence of a consensus among lenders — seems to have now receded. “Liberty House scored higher on a mix of financial and technical parameters,” another source said.
The committee of creditors is also likely to keep in mind the government’s directive to back the highest financial bidder to realise better value and have a reduced haircut on outstanding loans. Sources said some paperwork and discussions with Liberty House will take place over the next few days.
Subsidiaries of Amtek Auto — Castex Technologies and Metalyst Forgings — will be sold separately to help lenders realise better value, the sources added. They are also facing bankruptcy proceedings. All the three companies are believed to be carrying an overdue of Rs 22,000 crore.
Liberty House is also fighting a battle to acquire Bhushan Power and Steel, another high profile case in NCLT, where its application is pending. Earlier, there were fears that Amtek Auto could slip into liquidation if bids from the suitors were below the liquidation value. However, the lenders — that include SBI and Corporation Bank — had asked them to improve bid valuations.
Sources said the bids were discussed with the lenders on Tuesday and the committee of creditors is expected to announce its decision towards the end of this month.
“We have shortlisted a resolution applicant,” a source said, suggesting that the threat of liquidation — that had loomed large in the absence of a consensus among lenders — seems to have now receded. “Liberty House scored higher on a mix of financial and technical parameters,” another source said.
The committee of creditors is also likely to keep in mind the government’s directive to back the highest financial bidder to realise better value and have a reduced haircut on outstanding loans. Sources said some paperwork and discussions with Liberty House will take place over the next few days.
Subsidiaries of Amtek Auto — Castex Technologies and Metalyst Forgings — will be sold separately to help lenders realise better value, the sources added. They are also facing bankruptcy proceedings. All the three companies are believed to be carrying an overdue of Rs 22,000 crore.
Liberty House is also fighting a battle to acquire Bhushan Power and Steel, another high profile case in NCLT, where its application is pending. Earlier, there were fears that Amtek Auto could slip into liquidation if bids from the suitors were below the liquidation value. However, the lenders — that include SBI and Corporation Bank — had asked them to improve bid valuations.
(This article was originally published in The Times of India)
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