Lenders put assets of former unit of ailing Amtek group on block

Lenders are putting assets, including land parcels of Revent Metalcast, formerly Castex Technologies (CTL) of the ailing Amtek group, on sale under the National Company Law Tribunal (NCLT) resolution plan.

The transaction is expected to be completed in six months for recovery of dues. These assets include land in Bhiwadi (Rajasthan), Gurugram (Haryana) and Nalagarh (Himachal Pradesh).

Banking sources said Ernst & Young LLP, a process advisor appointed by the asset monitoring committee of CTL, is looking after the activity.

These assets and operating assets were carved out as part of a resolution plan approved by the NCLT in 2022. The resolution plan became effective in early 2022 and the monetisation should happen in 18 months, banking sources said.

While Castex was acquired by DVI, a US-based investment fund, some of the assets were transferred to lenders to monetise them for recovery.

Castex Technologies’ equity shares were delisted from the stock exchange pursuant to the resolution plan approved by the NCLT under Insolvency and Bankruptcy Code (IBC), 2016.

CTL went into corporate insolvency resolution process (CIRP) following an order (dated December 20, 2017) by the Chandigarh Bench of the NCLT. The CIRP culminated in the approval of a resolution plan (submitted by DVI USA) by the NCLT. Subsequently, the resolution plan was implemented on January 21, 2022.  

Revent was born consequent to the acquisition of two former Amtek group companies (Amtek Auto and Castex Technologies) by DVI.

DVI’s resolution plan for the businesses included a complete financial settlement of all past liabilities. It also planned induction of fresh capital for future growth.

CTL is engaged in manufacturing various machined and casting components for the automobile industry.

The company caters to original equipment manufacturers (OEMs) in diverse segments, including passenger vehicles, commercial vehicles, tractors, two-wheelers and three-wheelers.