KKR India Financial Services and LT Fin approached Chandigarh benchmark NCLTTT through securities custodian vistra ITCL. Mumbai: Following KKR India Financial Services’ move to a specialized bankruptcy court through Vistra ITCL, revival of Amtek Auto The scheme is once again in trouble. There has been no change in the rights to the mortgaged property after the resolution was passed. The security trustee is still seeking a copy of the settlement plan.

KKR India Financial Services and LT Finance approached through the Security Trustee Vistra ITCL National Company Court (NCLT) Chandigarh bench seeking intervention in the proposed resolution fund Deccan Value Investors LP (DVI), a US-based hedge fund.

The appeal relates to Amtek Auto part of the factory land being mortgaged by private lenders KKRR comprising India and LT Finance. Interestingly, DVI had recently filed an appeal before the National Company Appellate Tribunal (NCLAT) against the NCLT order holding that lack of clarity on certain aspects of the settlement could create hurdles in the future.

In its proposed resolution, DVI stated that the plan for a long-term lease of the Acee Complex land on which the mortgaged land is located is an important part of its revitalization plan.

“Surprisingly, during the hearing, the Resolution Professional (RP) admitted that the property in question does not belong to the Corporate Debtor (Amtek Auto) but to Respondent No. 4 (Gateway Impex Pvt Ltd) and the Petitioner (Security Trustee) ). ) hold a lien on the said property but the resolution plan provides a mechanism to acquire the said property,” the petition filed by Vistra ITC stated.

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As per the request submitted by the security trustee, KKR India Financial Services and LT Finance have provided about Rs 50 crore short-term loan to Brassco Engineering and WLD Investments, where Gateway Impex Pvt Ltd is the lessor of both the companies. On the same piece of land, Amtek Auto is the lessee. On the same piece of land, Amtek Auto is the lessee.

The land holds approximately 42% of Amtek Auto’s processing capacity.

According to sources familiar with the matter, the terms of Ace’s long-term lease are acceptable under DVI’s resolution plan The Complex land is one of the key conditions for continuation of the operation, and in addition, the Vistra ITCL has given its written consent to Amtekatek Auto in advance.1. The official said, “If these conditions are not met, the agreement will inevitably be terminated.”

Vistra ITCL’s demurrer was that in Haryana, the lender held mortgage on about 21.11 acres of land and the mortgaged property was not an asset of the debtor (Amtek Auto) and the company was the lessee of the land.

Vivek Chaand Sehgal, an auto parts supplier, has set a tough target for Motherson Sumi/p. The lender has now asked the tribunal to ensure that its secured property rights are not affected in any way while approving the settlement.

A person familiar with the matter said, “For the IBC asset bid to be commercially viable, i.e., DVI sought and obtained creditor consent from the outset to incorporate a number of key commercial protections.” ; The reality is that unless the CoC is going to address the business conditions, the plan will not work. ‘

Vistra ITCL, KKR India and DVI declined to comment when contacted. As of the time of writing, comments to LT. Finance and an email query sent by Amtek Auto RP Dinkar Venkatasubramanian remained unanswered.

On July 9, NCLT DVI was cleared for its Rs 27 billion takeover offer for Amtek Auto. The company was acquired by the Reserve Bank of India The company was included in the first 12 mandatory liquidation of debtor companies by the Reserve Bank of India (RBI). At the time of filing the bankruptcy petition in the bankruptcy court, the total debt of the company was more than Rs 127 billion.

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