Corporate

Liberty House misses deadline to pay Amtek, Adhunik lenders

Steel major Liberty House, which made a binding offer to purchase ArcelorMittal’s steel plants in Europe, missed the deadline to pay local lenders of auto components company Amtek Auto and specialised steel maker Adhunik Metaliks to purchase them under the Insolvency and Bankruptcy Code, three people with direct knowledge of the development said. The UK-based Indian entrepreneur Sanjeev Gupta-led Liberty House had won both assets in July and was expected to pay lenders Rs 4,810 crore by October, according to the resolution plan agreed between the lenders and the buyer. There are several disputed court cases in the insolvency tribunals like NCLT/NCLAT that need to be resolved before these deals can be completed and other formalities like the approval of the Competition Commission of India (CCI) a person, close to the Liberty House, said. Liberty House has filed a petition in the Kolkata bench of NCLT to direct lenders of Adhunik Metaliks to grant the company more time to pay the dues. The lenders are likely to file a petition opposing Liberty House’s plea, while a similar plea filed by the company in the Chandigarh bench of NCLT for Amtek Auto is awaiting a final order.

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