Amtek Auto shares down 5%; hit lower circuit on BSE

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.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)