NCLT Greenlights Steel Strips Wheels Ltd's Resolution Plan for AMW Autocomponent Ltd

The National Company Law Tribunal (NCLT) in Ahmedabad has granted approval to the resolution plan put forth by Steel Strips Wheels Ltd (SSWL) for AMW Autocomponent Limited (AACL), the Corporate Debtor. In a meeting held on Tuesday, January 09, 2024, the Board of Directors of SSWL sanctioned the infusion of funds into AACL in accordance with the approved resolution plan.

Under this plan, SSWL is set to inject Rs. 138.15 Crores into AMW Autocomponent Limited through a combination of equity and debt. The approved resolution plan outlines the fund infusion as follows:

1. Subscription of 50,00,000 Equity Shares of Rs. 10/- each, totaling Rs. 5,00,00,00,0 of AMW Autocomponent Limited (AACL).


2. The remaining amount of Rs. 133.15 Crores will be provided as an Inter Corporate Loan to AACL.

These funds are intended for the complete settlement of financial creditors, operational creditors, workmen/employees, and other creditors of AACL. The implementation of the resolution plan will result in the discharge of SSWL's obligations.

Upon the successful execution of the Resolution Plan, SSWL will hold a 100% equity interest in AACL, making AACL a wholly-owned subsidiary of SSWL. Simultaneously, in accordance with the approved Resolution Plan, the existing issued equity share capital of AACL, comprising 4,92,03,251 equity shares of face value Rs. 10/- each held by existing shareholders, will be canceled and extinguished without any payment to the shareholders.

EQUITYBULLS