NCLT calls for strategic, fin bids for Amtek Auto

CHENNAI: Bids have been called from prospective buyers -both strategic and financial -for the beleaguered

auto

component maker

Amtek Auto

, which is facing insolvency proceedings. The strategic buyer must have a minimum net worth of Rs 1,000 crore, while financial investors should have minimum funds under management of Rs 3,000 crore for the past five years to qualify.

The deadline for submission of expression of interest (EoI) is September 11.

Amtek

Auto chairman Arvind Dham has indicated that the group will bid alongside other Amtek investors.

Speaking exclusively to TOI, Dham said, "We are one of the 12 cases being handled by the

National Company Law Tribunal

(

NCLT

) and an independent interim resolu tion professional (

IRP

) is looking through the matter of restructuring the company."

Publicly calling for EoIs from potential investors, he added this is "fairly standard legal procedure under the NCLT". "They are seeking investment proposals and we will also be giving a proposal.We are also talking to other Amtek investors for this purpose. The NCLT process is on and we will go by that."

The IRP advertisement came out on Wednesday. This is the result of a petition by Amtek lead banker

Corporation Bank

to the NCLT, asking the body to start insolvency proceedings. That's also when Dinkar Venkatasubramanian, partner, restructuring and turnaround services, E&Y, was approved as IRP in the matter.