Amtek in advanced talks with banks for debt realignment

Automobile parts maker Amtek Auto today said it is in advanced discussions with various banks and financial institutions for realignment of its debt obligations.
On a day when its shares tanked a further 11.46 per cent to Rs 45.95 following reports of the company defaulting on a Rs 800 crore bond payment, Amtek Auto however did not share further details.
"We wish to clarify that the company is in advanced discussions with various banks and financial institutions for realignment of its debt obligations," the company said in a filing to BSE.
The deadline for redeeming five-year bonds had expired on Sunday and the company did not make payments.

Earlier this month, the troubled auto components maker had said it was considering to sell non-core business, minority stake in overseas firm and some industrial real estate assets within the business to overcome the financial crisis it was facing.
Last month, the company said there is "temporary cash flow mismatch" and to mitigate the situation, promoters have already infused Rs 75 crore and if required, will infuse more funds in future.

The company attributed its financial stress to the current market scenario "which caused decline in the sales and profit margins of the company".
Besides the financial problems, Amtek Auto has also been facing investigation by Sebi into alleged share price manipulation at its subsidiary Castex Technologies with role of banks, mutual funds and rating agencies also coming under the scanner.

The capital market regulator has started an investigation into possible rigging of Castex Technologies' share price through forcible conversion of foreign bonds.