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Liberty House to buy Amtek Auto’s UK assets

LiveMint logoLiveMint 21-07-2017 Shally Seth

Mumbai: Amtek Global Technologies Pvt. Ltd, a subsidiary of Amtek Auto Ltd, agreed to sell its manufacturing plants in the UK to Britain-based Liberty House Group, Amtek Auto said in a filing to the stock exchanges on Friday.

The company did not any disclose details of the deal. The subsidiary of the debt laden company has been up for sale since 2015.

Liberty House is an international metals and industrial group.

Amtek has plants in Essex and the West Midlands in the UK and Europe. The buyout by Liberty will help safeguard about 550 jobs, the Telegraph reported on 20 July. “Despite current challenges, this operation is a valuable asset and a vital part of the UK and EU automotive supply chain,” Sanjeev Gupta, executive chairman of the Liberty House Group told the Telegraph.

Since it defaulted on bond repayments of close to Rs800 crore in September 2015, Amtek has been trying to sell various group businesses to reduce the debt on its books.

The company has appointed Morgan Stanley as an adviser to assist in its debt reduction plan. Amtek Auto owed Rs8,066 crore to various lenders as of 30 September 2016.

On 16 June, the Reserve Bank of India (RBI) sent to commercial banks a list of 12 defaulters against whom it wanted creditors to invoke immediate bankruptcy proceedings. Amtek was among them.

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