SBI now begins bankruptcy proceedings against Amtek Auto arm: Report
The event comes three months after Amtek Auto, one of the 12 debt-ridden firms identified by the Reserve Bank of India (RBI), was taken to bankruptcy court.
October 27, 2017 / 01:18 PM IST
The State Bank of India (SBI) has started bankruptcy proceedings against Castex Technologies, an Amtek Auto subsidiary, sources told Mint.
This comes three months after Amtek Auto, one of the 12 debt-ridden firms identified by the Reserve Bank of India (RBI), was taken to bankruptcy court.
The subsidiary is an iron casting company and is based in Haryana. The company is one among the 29 firms where the RBI had directed early resolution. If not followed, the firms will be brought under the Insolvency and Bankruptcy Code (IBC) before December 31.
Sources told the paper that the bank is also looking into Amtek's two other units — Metalyst Forgings and Amtek Ring Gears. The move comes about after many investors, including Bharat Forge, Bain Capital, showed interest to buy a stake in the group.
The Amtek Group has consolidated assets worth Rs 26,080 crore and the group is spread across various sectors such as forging, iron and aluminium casting, machining and sub-assemblies.
Castex stood with a total debt of Rs 6,285 crore at the end of March 2017. The other two subsidiaries — Metalyst and Amtek Ring Gears — had debts of Rs 3,473 crore and Rs 2,000 crore, as on March 31, 2017.