The Amtek Auto stock is down 10 per cent today on reports that the company has defaulted on debt repayment worth Rs 800 crore that was due on Monday. On its part, the management maintains that it is in negotiations to secure fresh funds to repay its dues. It is said the company has about 80 lenders, including banks and JP Morgan Mutual Fund, for these bonds.

Amtek Auto has been in trouble since mid-June when it was reported that the company was facing a liquidity crunch and an inability to service its debt (about Rs 17,600 crore as of March 2015 for the Amtek Group).

In the recent June 2015 quarter, Amtek Auto posted a loss of Rs 157 crore, with interest costs doubling over the year-ago period. This led to rating agencies downgrading the company’s debt. The stock has also been under pressure since early August, when group company Castex Technologies was accused of artificially pushing up its stock price to trigger a clause that permitted conversion of its FCCBs worth about Rs 530 crore.

With the stock taking a hard knock, Amtek Auto’s management assuaged debt default worries earlier this month. The management announced that they are in negotiations with lenders. Besides, about Rs 75 crore was pumped in by promoters through a preferential allotment recently.  The company also announced plans to raise $1 billion (about Rs 6,500 crore) from stake sale in overseas group companies as well as sale of non-core assets in the next 12-15 months.

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