Shares of Amtek Auto today fell by 5 per cent after the company said insolvency proceedings initiated by a consortium of banks led by Corporation Bank has been accepted by the National Company Law Tribunal (NCLT).
The stock declined 4.98 per cent to settle at Rs 29.60 -- its lowest trading permissible limit for the day -- on BSE.
On NSE, it went down by 4.5 per cent to close at Rs 29.65.
"The application filed by Corporation Bank under section 7 of the Insolvency and bankruptcy Code, 2016... Before NCLT, Chandigarh has been admitted by the tribunal," the company said in a BSE filing yesterday.
Bankruptcy proceedings have also been initiated against other companies including Electrosteel Steel, Lanco Infratech and Jyoti Structures Ltd which are among the 12 NPA or bad loan cases identified by the Reserve Bank of India.
Once a case is admitted by the NCLT, there is a 180-day timeline to decide on a resolution plan, though 90 days can be given in addition. If a plan is not decided, then the company goes into liquidation.
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