Amtek Auto's board on Friday discussed ways to resolve debt repayment issues as the components maker faced the likelihood of falling under Insolvency and Bankruptcy Code as per RBI guidelines.
The company also said its Vice-Chairman and Managing Director John Ernest Flintham and Independent and Non- Executive Director Sanjiv Bhasin have resigned with immediate effect citing "unavoidable circumstances".
Under IBC, banks are required to resolve issues of bad loans within a stipulated timeframe failing which they would be asked to file insolvency proceedings against the defaulters.
The company had last week announced plans to issue more than 2.6 crore shares to a lender as part of restructuring debt of Rs 95.26 crore.
The company will seek shareholders nod for the proposal during the upcoming annual general meeting (AGM) on July 7.
If approved, Assets Care and Reconstruction Enterprise would have a stake of 9.75 per cent in the auto component firm. On the other hand, promoter group stake would come down to 47.29 per cent from the current 52.39 per cent.
In another development, Amtek said its board approved with requisite majority resignations of Flintham and Bhasin, with effect from June, 23 2017 due to their unavoidable circumstances.
The company stock today closed 0.48 per cent down at Rs 30.80 on BSE.