NCLT approves resolution plan of Steel Strips Wheels Ltd for AMW Autocomponent Ltd

National Company Law Tribunal, Ahmedabad (NCLT), has approved the resolution plan submitted by the Company for AMW Autocomponent Limited (AACL, Corporate Debtor). The Board of Directors of Steel Strips Wheels Ltd at its meeting held today i.e. Tuesday, January 09,2024, have approved to infuse funds in the AACL, as per the approved Resolution Plan, in the following manner:

SSWL shall infuse Rs. 138.15 Crores into AMW Autocomponent Limited(AACL) through a mix of equity and debt as per the approved Resolution Plan in the following manner:

- subscription of 50,00,000 Equity Shares of Rs, 1O/- each aggregating to Rs. 5,00,00,OOO/- of AMW Autocomponent Limited (AACL)

- the remaining amount i.e., Rs, 133,15 Crores as Inter Corporate Loan to AACL.

The said amount shall be utilized as full and final settlement of financial creditors, operational creditors, workmen/employees and other creditors of AACL, and shall be treated as full discharge of SSWL's obligation under the approved resolution plan.

Upon implementation of Resolution Plan, SSWL shall hold 1OO% equity interest in AACL, consequently, AACL shall become wholly owned subsidiary of SSWL. Simultaneously, as provided in the Resolution Plan, the existing issued equity share capital of AACL comprising of 4,92,03,251 equity shares of face value Rs. 10/- each held by existing shareholders shall be cancelled and extinguished without any payment to the shareholders in accordance with the approved Resolution plan.

Source : Equity Bulls

Keywords

SteelStripsWheels NCLTApproval ResolutionPlant AMWAutocomponent FundInfusion