Mutual Fund

London-based Liberty House fails to make the payment for Amtek Auto

London-based Liberty House failed to make the payment for Amtek Auto on Thursday as the deadline set by the lenders came to an end throwing the entire debt resolution process off track. The company had made the winning bid for Amtek Auto in July this year at Rs 42 billion but has not paid any amount to banksto date, said a source close to the development. Lenders will now seek directions from court whether to initiate action under Section 74(3) of the Insolvency and Bankruptcy Code (IBC). The section is triggered when the bidder defaults on a court-approved plan, and can result in a jail term of up to five years and a fine of up to Rs 10 million or both. This is a violation of an NCLT (National Company Law Tribunal) order. The company’s liquidation value was Rs 40 billion. Liberty House also won the race for Adhunik Metaliks but did not pay the banks, citing a pending case between Adhunik and state-owned MSTC. The MSTC vs Adhunik case will be heard on December 11..

 

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