NCLT Approves Amtek Auto Resolution Plan

The National Company Law Tribunal (NCLT) approved the resolution plan for bankrupt firm Amtek Auto, submitted yesterday by US-based hedge fund Deccan Value Investors LP (DVIL), the India Times reported. This brought to a close the three-year old case after the Supreme Court (SC) in June, refused to give more time for DVIL to assess the impact of the economic contraction caused by the pandemic. A two-judge bench headed by Justice Ajay Kumar Vatsavayi passed the order, which as per the law, provides DVIL with 30 days to complete the payments. In February, lenders of Amtek Auto agreed to take an 80 percent haircut on the amount the bankrupt firm owed them by voting in favour of DVIL’s Rs 2,700 crore resolution plan. The auto parts maker owed the IDBI and State Bank of India-led Committee of Creditors (CoC) a total of Rs 12,700 crore. In its order, the Chandigarh bench of the NCLT also provided for an implementation and monitoring committee to oversee the implementation of the resolution plan. Read more.