Companies

IDBI puts on sale AMW Motors to recover debt

RAJESH KURUP K RAM KUMAR Mumbai | Updated on January 20, 2018


A consortium of lenders led by IDBI is working on a deal to sell majority stake in Mumbai-based AMW Motors as part of a corporate debt restructuring exercise.

AMW owes nearly ₹1,800 crore to the lenders for which it may have to sell 51 per cent stake to a strategic investor.

Russia’s Kamaz in talks

The company has already introduced to the bank Russia’s largest truck manufacturer Kamaz Motors as a possible investor.

“AMW Motors, once a major player in the tipper market and currently facing a tough time, will be able to get back on track through this partnership. The move will enable the debt-laden AMW Motors get funds and tide over its working capital constraints,” said a source aware of the development.

“Further, it will also help the company bring in new technology and find newer export markets where the partner already has presence,” he added.

An AMW Motors spokesperson declined to comment while Kamaz could not be reached.

Published on April 26, 2016

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