Mumbai:Crisis-hit Amtek Auto lenders will soon take a decision and formulate a Corrective Action Plan (CAP) based on the special audit report that is likely to be submitted next week.

The bankers commissioned a special audit by TR Chadha and Co (City Audit and Accountancy firm) after the company fell into financial difficulties.

The New Delhi-based auto component manufacturer failed to repay foreign currency bonds (FCCB) worth Rs 80 crore last month.

More than 80 prominent investors have now defaulted on their bonds.

Domestic subscribers to the bonds include Axis Bank, Karur Vysya Bank, Syndicate Bank and Corporation Bank.

“Amtek Auto final special audit report will be released by the end of the month in 10 A senior official of the public sector bank told PTI.

Bankers said that after the special audit, they will decide how much new loans will be given to auto parts companies.

“We are working on a corrective plan but it will take some time,” said an official of another state-owned bank, adding, “Once the audit report is out, we will decide to support the company.”

The lenders agreed to provide additional funds to the debt-laden company but asked the promoters to raise some shares first.

A public sector banker earlier told PTI: “We have reached the promoters led by Arvidddddd Dhamm making it clear that they have to get some shares first and we will provide funds accordingly.”

The Amtek group owes over Rs 2,600 crore to 32 banks including State Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, Bank of India, IDBI Bank of Maharashtra and UCOO Bank.

Banks have an exposure of around Rs 800 crore to Amtek Auto, the flagship company of the Amtek Group.

This compares to sales of Rs 20 billion in 2014-2015.

The company has a global presence and urgently needs to provide liquidity of Rs. 8 billion to repay foreign bonds.

JP Morgan Mutif, a leading fund management company, is in trouble after 8 restricting withdrawals from two funds in the month.

JP Morgan Mutif restricted withdrawals of around Rs 20 crore from two debt schemes (Short Term Income Fund and Indian Treasury Fund) of Amtek Auto.

Most of these lenders took risk in the form of term loans while others took risk in the form of bond subscriptions.

Last month, Amtek Auto said it was considering selling some of its assets in response to the financial crisis.

The company told the Bombay Stock Exchange last month, “The company is currently considering various plans to liquidate its balance sheet, including sale of non-core businesses, minority stakes in overseas companies and sale of some industrial real estate assets in the business.” . The document has the statement.

In September this year, the Delhi-based promoters infused Rs 750 crore to ease the “temporary cash flow mismatch”.

The sponsors also said they would invest more in the future if necessary.

The company attributed the financial pressures to current market conditions, which “have resulted in lower sales and margins.”

As the crisis deepened, global credit rating agency Standard & Poor’s (SP) in September, Singapore-based international subsidiary Amtek was downgraded Global’s credit rating due to increased liquidity risk at its parent company, Amtek Auto. was downgraded.

“The rating downgrade reflects the increased liquidity risk of our Indian parent company, Amtek Auto.

S&P Ratings said, “We believe that Amtek Auto Amtek may not have sufficient liquidity to meet its interest or debt obligations, which could lead to a default or debt restructuring of Amtek Auto.”

The group was scanned by Sebi after Technologies, a subsidiary of Castex, was found to be involved in stock manipulation.

During the crisis, the exchange decided that from October 30 The company’s FO will carry out from day Contracts excluded from the equity derivatives business, leading to a 70% drop in the company’s share price.

On September 3 alone, Amtek Auto shares plunged 35%.