Debt trap

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Amtek group companies have seen their market value erode by around 90 per cent from their 2015 peak. The group's high debt, cash crunch and fears of default have forced investors to dump its shares. In a statement to the stock exchanges last month, Amtek Auto had said it was facing "temporary cash flow mismatch" due to "decline in the operational performance". The group has debt of Rs 26,000 crore. Rating agencies have suspended coverage on the company due to lack of information. While debenture holders, including JPMorgan Mutual Fund, have got spooked by the situation, FCCB holders have cried foul, alleging they have got short-changed by share price manipulation. The scheme of events has created huge uncertainty for investors and other stakeholders.