Auto Amtek Got Affected by the Auto Slowdown - TyreCafe

by Editor News


amtek-auto

With a major decline of the automobile sector in India, the lenders of the auto component maker Auto Amtek are finding it hard to search for a new suitor after the initiation of the resolution process prior month after the orders from the Supreme Court.

Even after the consistent demand for the asset, the present downfall of the automobile sector is refraining the interested buyers to engage in the process claimed a person closely related to the resolution process. The total debt to be given to the lenders by the company is 12,000 crore. In July 2017, it was admitted for the insolvency resolution and became one of the 12 assets that were listed by the Reserve Bank of India for the immediate resolution. Some major companies like KKR, Deccan Value Investors of the US and Bharat Forge has shown interest prior to the auto sector breakdown last year when the auto industry had consistent growth.

The depreciation of the auto component industry has reached 21 per cent in the first four months of fiscal. A total of around 2 billion worth of investment was left pending by the industry that was planned for this year. Subrata Ray, head of corporate sector ratings at ICRA, said in a report that “Most players are taking a relook at their capital expenditure plans; consequently, across segments, ICRA estimates a cut back ranging between 15-25% by most players”. Even the reviews given by the ICRA changed its outlook to 'negative'  on the auto component.

The resolution process has crossed its deadline by 270 days as it was abruptly left by the winning bidder Liberty House and has refused to pay the sum due to the contrasting realities in the information of the actual due process from the existing reality in the ground. The resolution professional Dinkar Venkatasubhramanyam of EY has been appointed by the Supreme Court to do the task and get fresh bids in a span of 21 days and another two weeks to complete the process.

 
 

Latest News

Auto Amtek Got Affected by the Auto Slowdown - TyreCafe

With a major decline of the automobile sector in India, the lenders of the auto component ...

Read More

MG Hector Sales Beat Tata Harrier and Jeep Compass - TyreCafe

MG Hector Sales has successfully beaten the sale depreciation that has caused a major setback in ...

Read More

Electric Vehicle Charging Guidelines Finalised by the Govt - TyreCafe

According to the new Electric Vehicle Charging Guidelines, at least one charging ...

Read More

Toyota Launches VRS for Permanent Employees After Slowdown-TyreCafe

Toyota has become the fourth auto company to launch VRS for its employees in the past two ...

Read More

Tamil Nadu Govt Plans to Carry Out EV Manufacturing Plans – TyreCafe

Tamil Nadu government is conducting extensive location study and taking a step towards a ...

Read More

Lexus RX450hL SUV Launched In India - Price and Features – TyreCafe

Lexus has introduced the 2020 Lexus RX450hL Luxury SUV in India with prices starting at INR 99 ...

Read More

Vehicle Scrapping Norms and Policy To Be Out This Month - TyreCafe

The whole Vehicle Scrapping Norms making process is carried forward with the consultation of the ...

Read More

Auto Sales Analysis – Domestic Sales Continues To Decline – TyreCafe

Auto sales in the country continue to remain under pressure in September as purchases have ...

Read More

Asian Cities Switch to Electric Vehicles to Reduce Pollution - TyreCafe

Cities in the Asian countries are switching to Electric Vehicles in an effort to tackle ...

Read More

CEAT Specialty To Launch Two Agricultural Application Tyres – TyreCafe

Tyre manufacturer CEAT Specialty is all set to launch two brand new agricultural application ...

Read More
See All

tools