The National Company Law Tribunal (NCLT) has given the official nod to Liberty House’s resolution plan for bankrupt Amtek Auto under the Insolvency and Bankruptcy Code (IBC).
This resolution comes just five days after the final nod in the Monnet Ispat case for NPA resolution.
Amtek Auto, which owes nearly Rs 12,000 crore, was among the 12 big accounts identified by the Reserve Bank of India (RBI) as ‘Dirty Dozen’ for immediate resolution.
While Liberty House got the official nod from the insolvency court for acquiring Amtek Auto, Reliance Industries-JM Financial ARC, which has emerged highest bidder for Alok Industries, is awaiting the approval. Bhushan Steel, which had a debt of Rs 45,000 crore, was the first account to be resolved under the IBC law. Bhushan Steel was acquired by Tata Steel at the minimal haircut of 37%.
The second account to complete the resolution process was Electrosteels Steel, which was acquired by Anil Agarwal-led Vedanta. Next came Monnet Ispat, in which the NCLT gave the final nod to the resolution plan submitted by AION Capital-JSW Steel consortium.
The resolution for Bhushan Steel’s sister company Bhushan Power & Steel (BPSL) is in the final stages, in which Tata Steel, JSW Steel and Liberty House are in the race. The RBI identified 12 big accounts constituting 25% of the total NPAs in June last year, followed by another 28 in December.