Amtek Auto crashes 20%, defaults Rs 800 cr bond payment

Mumbai, September 22: Amtek Auto, which has defaulted on a Rs 800-crore bond payment, today said it is in discussions with lenders to restructure its debt.

Following the default on loans by Amtek Auto, JPMorgan Mutual Fund, which had an exposure of Rs 200 crore in the Delhi-based auto ancillary firm’s bonds, has assured its investors that it was taking steps to recover the money from the company.
“We assure that if any positive development takes place, the same will be intimated to the exchange as per the requirement of the listing agreement”, it added. “We have not been approached by them yet”.
Amtek also said it was not aware of any information that has not been announced to the exchanges which could explain movement of the share price. “There is no formal communications from the company asking for funds”, said another banker.

Lenders have an exposure of Rs 8,000 crore to Amtek Auto.
Shares of Amtek Auto crashed 20 percent intraday on Tuesday as the company defaulted a Rs 800 crore bond payment due on Sunday.
Last month, the company said there is “temporary cash flow mismatch” and to mitigate the situation, promoters have already infused Rs 75 crore and if required, will infuse more funds in future. The domestic subscribers to the bonds include Axis Bank, Karur Vasya Bank, Syndicate Bank, and Corporation Bank among others.
Meanwhile, BSE has sought clarification from Amtek Auto on the matter.
The capital market regulator has started an investigation into possible rigging of Castex Technologies’ share price through forcible conversion of foreign bonds.

source: ledger gazette

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