Lenders say Amtek hasn't approached them for new loans yet

Even as cash-crunch hit Amtek Auto informed exchanges that it's in advanced talks with banks for fresh funds to repay its Rs 800 crore debt, lenders today denied any such discussions and said they've serious reservation about further lending to the auto component maker.
"We have not been approached by them yet. Even if they do, we have reservations because we don't see any cash flows for the company," said one of the bankers which is part of the consortium of a dozen lenders.
"There is no formal communications from the company asking for funds," said another banker.
Lenders have an exposure of around Rs 8,000 crore to Amtek Auto which is a part of Amtek Group, the component manufacturers with global presence. The group owes over Rs 26,000 crore to 32 bankers which include State Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, Bank of India, IDBI Bank, Bank of Maharashtra and Uco Bank among others.

Majority of the lenders have exposure in the form loans while others have by way of bond subscriptions.
The Delhi-based company has missed payments on its Rs 800 crore worth of five-year foreign currency bonds yesterday that got matured on September 20.

There are more than 80 investors in now-defaulted bonds. The domestic subscribers to the bonds include Axis Bank, Karur Vasya Bank, Syndicate Bank, and Corporation Bank among others.
The company, however, today informed the exchanges in separate mail that it is in advanced talks with banks and financial institutions for raising funds to repay the bond holders.
"We wish to clarify that the company is in advanced discussions with various banks and financial institutions for realignment of its debt obligations," Amtek Auto said in filings to BSE and NSE today.

The company's response came after NSE and BSE sought clarification from Amtek on reports that the firm was in talks with banks to find a solution to its financial crisis.