Amtek Group

Amtek Group www.infralive.com 25 Infra LIVE March 15, 2020 declared as the H1 bidder, but did not submit the perfor- mance bank guarantee. In the re-bid, Deccan Value Investors LP (DVI) submitted its plan and was declared as the H1 bidder. 3. Metalyst Forgings Ltd Total admitted claims of financial creditors is Rs 3,841 crore (see table-3 at pg 27). The detailed sequence of events is given in box-3 at pg 29. In this case, Deccan Value Investors LP (DVI) submitted its plan and was declared as the H1 bidder. Later, DVI did not submit the performance bank guarantee. 4. AGRL Ltd Total admitted claims of financial creditors is Rs 1,186 crore (see table-4 at pg 27). The detailed sequence of events is given in box-4 at pg 29. In this company, LHG was the only party who gave the resolution plan. COC voted in its favour and once the plan was approved, LHG backed out and did not submit the perfor- mance bank guarantee. In this whole exercise, the price for ARGL was known. This kind of behavior creates opportunity for other firms to takeover debt laden companies at throw away prices. In the re-bid, another party - Invest- ment Opportunity IV PTE Ltd - submit- ted its resolution plan and got it approved. 5. Adhunik Metaliks Ltd and Zion Steel Ltd Total admitted claims of financial creditors is Rs 5,371 crore. The liquida- tion value of Adhunik Metaliks Ltd (AML) and Zion Steel Ltd (ZSL) was Rs 435 crore and Rs 14.50 crore, respec- tively. The detailed sequence of events is given in box-5 at pg 29 & 30. In July 2018, Liberty House Group (LHG) was declared as the H1 bidder. It had offered to pay Rs 410 crore to finan- cial creditors of AML and Rs 15 crores to financial creditors of ZSL, and Rs 40 crores towards workmen dues. It also committed to infuse Rs 150 crore in the company to revive it. But, LHG failed to comply with the payment terms as stipulated in the Resolution Plan. As a result, the plant remained shut-down for two years and thousands of employees remained unem- ployed due to the said prolonged delay caused by LHG. Finally, sometime in January/February 2020, LHG paid. But, in the process, the bankers suffered huge interest loss due to the delayed payment of the resolution amount by LHG. Surprisingly, the CoC did not take any step against LHG and instead waited for 18 months for their dues to be paid, unlike in the case of Amtek Auto where they had approached the Supreme Court for fresh bidding. It is pertinent to mention herein that Adhunik Metaliks Ltd (AML) is an integrated steel plant which produces alloy steel or special steel. The finished products of this plant is used for various auto industries and forging units. The finished product of AML is the raw material for Amtek Auto Ltd and its subsidiaries. It may be noted that LHG had given resolution plan for the both Amtek Auto Ltd and Adhunik Metaliks Ltd and proceedings of both Adhunik Metaliks Ltd and Amtek Auto Ltd were going in a parallel manner. Once Deccan Value Investors LP (DVI) was declared as H1 bidder in Amtek, the LHG group gave its affidavit in AML's resolution proceed- received. Liberty House Group (LHG) emerged as the H1 bidder offering Rs 4,025 crore. This included upfront payment of Rs 3,225 crore and Rs 500 crores fresh infusion of funds to stabilize the operation. The second bid was from Deccan Value Investors LP (DVI). On March 6, 2018 the Com- mittee of Creditors (CoC) declared LHG as the successful bidder. On July 25, 2018, NCLT, Chandigarh approved the Resolution Plan of LHG. Thereafter, LHG defaulted in making payment. NCLT asked to consider H2's bid. But, even DVI backed out. In December 2019 fresh bids were called. This time, DVI quoted Rs 2,700 crore in deferred payments (Rs 1,500 crore NPV) and was declared as H1 bidder. This was much lower than what LHG had quoted earlier and also much lower than the liquidation value. 2. Castex Technologies Ltd Total admitted claims of financial creditors is Rs 7,313 crore (see table-2 at pg 27). The detailed sequence of events is given in box-2 at pg 28. In this case too, LHG was Amtek Auto Ltd Castex Technologies Ltd Metalyst Forgings Ltd ARGL Ltd Arvind Dham, Amtek