Castex Technologies and Amtex Auto face heat of insolvency

Mumbai Dec 28: Another company would face the heat of Insolvency proceedings. The National Company law Tribunal had Admitted the insolvency petitions filed against Castex Technologies and Amtex Auto which were filed by State Bank of India (SBI)

Castex Technologies, a provider of iron cast auto components is a subsidiary of automotive component maker Amtek Auto with a debt of over Rs 6,000 crore.

The CT is one of the 29 companies list issued by RBI for which debt settlement period was Dec 13 and the company failed to settle to the debt so the bank has approached NCLT.

The NCLT admitted Castex Technologies for corporate insolvency resolution process on December 20 and appointed Dinkar T Venkatasubramanian as the interim resolution professional for CT and Amtex Auto.

State Bank of India had granted loans totaling Rs 1,191 crore to Castex Technologies. The company had defaulted on Rs 572 crore as of October 9, 2017,