This debt-laden firm just hit upper circuit on some good news

Amtek Auto share price rallied 5 per cent to hit its upper circuit of Rs 22.25 after the panel of lenders to Amtek approved the debt resolution plan submitted by Liberty House, part of Sanjeev Gupta's global industrial group GFG Alliance.  "Pursuant to the provisions of Insolvency and Bankruptcy Code, 2016, the Committee of Creditors of Amtek Auto Limited (“AAL”) has approved the resolution plan submitted by Liberty House Group through e-voting process held between 4th April 2018 and 5th April 2018, which was held subsequent to the meeting of Committee of Creditors held on Monday, April 02, 2018," informed Amtek Auto in a regulatory filing to BSE. 

Liberty House announced last month that the company had emerged as the successful highest bidder for Amtek Auto. "Liberty House...is set to make a dramatic entry into India after being chosen as preferred H1 bidder for Amtek Auto assets which include 35 automotive component plants across India, Japan, Thailand and Spain, employing some 6,000 people," Liberty House said last month. 

“We are very excited about this opportunity to restore a great Indian business to its rightful position and add a major new asset portfolio to our international network,” GFG Executive Chairman Sanjeev Gupta said, adding that “this business will be the cornerstone of our strategy...and expand our footprint in the automotive sector worldwide.”

“We look forward to working closely with the high calibre customer base Amtek Auto enjoys. We are very pleased to be able to secure the jobs of 6,000 workers and welcome them to the global GFG family,” Gupta said.

This follows the corporate insolvency resolution process of Amtek Auto which began on July 24, 2017.

Amtek Auto is one of 12 large insolvency cases which the key lenders took to insolvency resolution process under the National Company Law Tribunal (NCLT).

Amtek is one of the largest integrated auto component manufacturers in India with operations across forging, iron and aluminium casting, machining and sub-assemblies.

As of December 31, 2017, promoters held 52.40 per cent stake in the company, while public investors held 29.67 per cent stake. Institutional investors had 7.12 per cent stake in the company. 

Amtek Auto stock is down over 25 per cent year-to-date, while it shed over 84 per cent in last three years. 

(With inputs from PTI)