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Amtek Auto Lenders Angry with Mr Sanjeev Gupta of Liberty Group

Steel News - Published on Wed, 21 Aug 2019

Image Source: Business Today
Mint reported that when an insolvency appeals court ordered the liquidation of bankrupt Amtek Auto Ltd last week, lenders lost hope of recovering much of the dues worth INR 12,603 crore owed by the once thriving auto parts maker. Many of Amtek’s lenders are now directing their anger at Mr Sanjeev Gupta, chairman of London based metals company Liberty House, which, after placing a winning bid to acquire Amtek Auto, backed out abruptly at the last moment, scuppering the bankruptcy process. A senior banking executive, who was on the committee of creditors of two of these assets, said that “It’s been a colossal loss for lenders. We want Liberty House to be blacklisted. In the case of Adhunik Metaliks, we will appropriate the INR 55 crore that has been paid to us by Liberty House. But we also want Liberty House to be penalized for the cost of delay in resolution and for how much the asset has deteriorated since their resolution plans were approved."

More than a year after being declared the successful bidder, Liberty House has failed to pay the INR 4,400 crore it offered to acquire Amtek. It’s not the first time that Liberty House has stumbled after placing a winning bid. This has been a pattern, lenders say. It has reneged on two previous occasions, one after emerging as the top bidder for ABG Shipyard and the other in the case of Adhunik Metaliks Ltd in a similar way.

In May, the Insolvency and Bankruptcy Board of India, the bankruptcy regulator, charged Liberty House and its senior executives with wilfully breaching the terms of the Amtek Auto resolution plan.

Source :

Posted By : Sanju Moirangthem on Wed, 21 Aug 2019
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