Default feared as Rs800 crore Amtek auto (Indian autoparts company) bonds set to mature

Mumbai: Amtek Auto Ltd will need to pay Rs.800 crore to investors in the next two weeks, when bonds sold by the company in 2010 mature, and concern is mounting among bankers and bondholders that the debt-laden auto parts maker, which reported a surprise June quarter loss, may default.
The Delhi-based company had sold the bonds at a coupon rate of 10.25%, its largest such sale in the local market. These bonds are coming up for redemption on 20 September, according to data from Bloomberg. Axis Bank Ltd managed the bond sale.
Apart from this lump-sum repayment, an additional Rs.40 crore of debt is due for payment on 16 October and Rs.50 crore on 4 November, according to a draft shelf disclosure document prepared by the company dated 7 April. Minthas reviewed a copy of the document. Amtek Auto's managing director Gautam Malhotra didn't respond to several calls seeking comment on Thursday and Friday. An email sent to the company also remained unanswered

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