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Amtek Auto’s Caltex admitted to bankruptcy court by NCLT

Steel News - Published on Fri, 29 Dec 2017

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Economic Times reported that Castex Technologies, a subsidiary of automotive component maker Amtek Auto with debt of over INR 6,000 crore, has been admitted to bankruptcy court. State Bank of India, the lead bank, initiated bankruptcy proceedings in the Mumbai bench of the National Company Law Tribunal (NCLT). The NCLT admitted Castex Technologies for corporate insolvency resolution process on December 20 and appointed Dinkar T Venkatasubramanian as the interim resolution professional. Venkatasubramanian, who is a partner at consulting firm EY, is also the resolution professional for Amtek Auto.

State Bank of India had granted loans totalling INR 1,191 crore to Castex Technologies. The company had defaulted on INR 572 crore as of October 9, 2017, the bank informed the court. The bank had attempted to revive the company by putting in place a corrective action plan in March 2016. As per the restructuring package, a joint lenders forum provided Rs 1,667.5 crore for capital expenditure, to shore up the company's net worth and to refinance a term loan amounting to Rs 920.8 crore.

NCLT, while admitting Castex Technologies, pointed out that even after granting sufficient time, the corporate debtor had not replied or objected to the notice issued by the lender.

Castex Technologies, a provider of iron cast auto components, is among 29 companies listed by the Reserve Bank of India that were required to be restructured by banks before December 13, failing which they would have to be referred to bankruptcy court by Dec31

Parent company Amtex Auto was also admitted to bankruptcy court following the BI's directions.

New Delhi-based Castex Technologies, which has plants in Haryana, Himachal Pradesh and Rajasthan, reported a loss of INR 1,044 crore in 2016-17 and a loss of INR 171 crore a year earlier.

Promoter Arvind Dham, who had given a personal guarantee on the loan, has a 46% stake in Castex Technologies.

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Posted By : Ratan Singh on Fri, 29 Dec 2017
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