Lotus Auto to face insolvency proceedings
Lotus Auto Engineering, an Amtek group owned company, owes about Rs. 650 crores (including interest) to a group of lenders including Oriental Bank of Commerce, Central Bank of India, Saraswat Co-operative Bank.
Oriental Bank which is one of the lead lender with half of the loan exposure has filed a complaint against Lotus Auto Engineering with NCLT (National Company Law Tribunal), which will now hear the case on April 17 for non repayment of the loans. There has been also some objection raised against the insolvency application, which the court has already heard, and the final result is expected in April.
Lotus Auto Engineering has its facility for machining of auto components at Bhiwadi in Rajasthan, the demand for which is scattered in both domestic and international market.
Amtek Auto which is also under a huge debt is facing insolvency proceedings, planning to get acquired by Liberty House which is part of Sanjeev Gupta’s global industrial group GFG Alliance, who emerged as the successful bidder for Amtek Auto Limited