Lenders order special audit of Amtek Auto books

Lenders to the crisis-ridden Amtek Auto Group have decided to conduct a special audit of its books before taking a call on extending further loans to the Delhi-based auto component maker, according to banks.
"A joint lender forum (JLF) meeting was held yesterday and it was decided to get a special audit of the Amtek Auto books," a bank official said today.
"Banks are doing something through the JLF," said a senior official with another state-run bank, without offering any more details saying they are still assessing the situation.
The lenders to the troubled company include Dena Bank, Corporation Bank, Bank of Maharasthra, among others.

The lenders are caught in such a quandary that none of them come on record or even reveal names of the trapped banks.
Meanwhile, Amtek Auto counter today rallied 75 per cent intraday and closed day at Rs 46.70, up 53.62 per cent after the management denied rumours about bankruptcy and assured cooperation with Sebi in its probe into stock rigging charges.

"The promoters have always and will always continue to support the business just like that they have done over the last nearly 30 years," John Flintham, senior managing director at Amtek Auto said.
After the difficulty in redeeming the Foreign currency convertible bonds (FCCBs), the problem got compounded after the marekt watchdog Sebi yesterday ordered a probe into Castex Technologies, an auto parts maker and subsidiary of debt-laden Amtek Group for alleged share price manipulation.

Shares of Castex Technologies today closed at Rs 38.35, down 4.96 per cent from its previous close on the BSE.
Sebi is examining trading details of Castex shares after some of its FCCB holders alleged price manipulation with an aim to push it up to trigger the mandatory conversion. Castex had on Thursday informed the exchanges that it had allotted equity shares to investors following a conversion of its FCCBs.