BSE monitoring Amtek; seeks reply on bond payment default

MUMBAI: Troubled Amtek Auto, which reportedly defaulted on its Rs 800-crore foreign currency bonds, today informed stock exchanges that it is in advanced discussions with various banks and financial institutions to meet its debt obligations.

"We wish to clarify that the company is in advanced discussions with various banks and financial institutions for realignment of its debt obligations," Amtek informed BSE and NSE in separate letters.

"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.

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.

The clarification came after NSE and BSE shot off letters to Amtek seeking clarification on media reports that the firm was in talks with banks to find a solution to its financial crisis otherwise it will not be able to service its Rs 8,000 crore loans.

The company stock plunged 20 per cent intra-day on the BSE and settled at Rs 45.95, down 11.46 per cent.

Meanwhile, BSE today said it is closely monitoring Amtek Auto and sought clarifications on reported default of Rs 800 crore foreign currency bonds.

"The exchange is monitoring the situation closely and would be seeking further details from the company whenever necessary pursuant to media reports about the FCCB default by Amtek Auto, the exchange has been periodically seeking clarifications from the company since June 18," a BSE spokesperson told PTI.

The Delhi-based auto components maker Amtek reportedly failed to pay on the Rs 800 crore worth of bonds that matured yesterday.

As per reports, the company is negotiating with banks for over Rs 1,000 crore fresh loans to repay bond holders, including JP Morgan Mutual Fund which had restricted withdrawals from two of its funds because of the Amtek bond ownership.

When contacted for enquiries, company officials informed was that its spokesperson is unavailable as he is travelling overseas. Interestingly, the company website does not offer any media contacts or email ids of its spokesperson and the media section is blank.

Amtek Group has also been facing probe by Sebi for alleged share price manipulation at its subsidiary Castex Technologies besides facing financial problems.

Over a dozen banks have more than Rs 26,000 crore exposure, mostly unsecured, to Amtek Group, which had about Rs 20,000 crore revenue last fiscal year.

Amtek required an immediate liquidity of Rs 800 crore to redeem foreign bonds but the banks have ordered a forensic audit of the books of the company before deciding on their future course of action.