Lenders select Ramkrishna Forgings resolution plan for ailing JMT Auto

Auto component manufacturing company undergoing insolvency proceedings

Lenders to JMT Auto, a unit of ailing Amtek Auto group, have approved a resolution plan by Ramkrishna Forgings to turn around the component manufacturing company.

JMT Auto is undergoing proceedings under Insolvency and Bankruptcy Code (IBC) and a resolution plan for it is subject to approval by the National Company Law Tribunal (NCLT).

BSE-listed JMT Auto, in a filing with the exchange, said two resolution plans complying with IBC conditions were put to e-voting on November 19, 2022. E-voting on the plans was concluded on January 16, 2023.

Ramkrishna Forgings' plan was approved by 84.61 per cent by lenders who are members of committee of creditors (CoC). JMT Auto did not disclose details of the resolution plan.

Kolkata-based Ramkrishna Forgings, set up in 1981, had a consolidated revenue of Rs1,523.7 crore and a net profit of Rs 118.6 crore in six months ended September 2022, according to a BSE filing.

JMT Auto's resolution professional was in the process of filing an application with the NCLT for approving the resolution plan, it added.

According to the Expression of Interest (EOI) document, JMT Auto has significant expertise in the auto sector with capabilities in heat treatment and gear manufacturing besides a variety of components for the Oil and Gas industry. In 2013, JMT Auto’s controlling shares were acquired by Amtek Auto, which itself was under IBC process.

JMT Auto has eight facilities in India. Its financial creditors are Axis Bank (Rs 76.93 crore of admitted claim), IDBI Bank (Rs 58.12 crore), State Bank of India (Rs 25.9 crore) and Rs 7.39 crore).