Deccan Value leads the race for Amtek Auto

Liberty House has submitted a revised bid for Amtek Auto on February 9 after the lenders had rejected the initial bids for the troubled auto components maker, asking the bidders to come back with a revision. State Bank of India and Corporation Bank had said that if the bidders failed to submit improved bids by Februray 9, they would then consider liquidation of the company.

Also Read — Exclusive: Liberty House enters fray for Bhushan Power & Steel, to put in bids by end of Feb

According to the report, Amtek's liquidation value is pegged at about Rs 4,200 crore or 33 percent of the outstanding loan.

"We understand that the Deccan Vaue offer is almost at par with the liquidation value," one of the sources told the paper.

"Deccan Value has offered Rs 4,041 crore. As per the proposal, Rs 2,850 crore will be paid upfront and balance in installments over three to five years."

Over the next few days, the banks will negotiate with the higgest bidder, the report said.

Resolution professional Dinkar Venkatasubramanian did not respond to an email query.

Earlier, the banks had extended the deadline by a week as the bidders did not furnish bid bond guarantee.

As per the existing law, a resolution plan for a bankruptcy company would not be considered by lenders if the applicant did not provide a bid bond guarantee.

A bid bond guarantee is a letter of comfort from the bank or a bank guarnatee that indicates that the bidder has either cash balance to complete the transaction or the banks would step in.

The Amtek group is believed to owe over Rs 26,000 crore to 32 banks, including State Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, Bank of India, IDBI Bank, Bank of Maharashtra and UCO Bank.

The auto component maker has been struggling to make a turnaround ever since it reported "temporary cash flow mismatch" in 2015 and defaulted on payment of an estimated Rs 800-crore bond.