Liberty House’s UK troubles: MCA, IBBI cautious of fallout

The Insolvency and Bankruptcy Board of India (IBBI) and the Ministry of Corporate Affairs (MCA) is intently watching the developments on the UK-based Liberty House Group (LHG) after stories of the corporate’s alleged monetary troubles emerged, senior authorities officers stated. The officers, nonetheless, stated there was no communication on the problem both from lenders or the corporate.
“There is only one case pending against Liberty House which is for initiation of criminal proceedings against the company for failing to go ahead on the Amtek deal after approvals. We are observing the reports for now,” a senior official stated. Earlier this week, stories prompt that the agency could also be having troubles discovering new lenders after one among its largest lenders, Greensill Capital, was requested by regulators to chop publicity to Gupta Family Group (GFG) Alliance. “We have adequate funding for our current needs while we bridge the gap to refinancing the business,” LHG founder Sanjeev Gupta informed UK commerce unions, as per a Reuters report.
In India as nicely, Gupta and his firms have had their run-in with authorities. Liberty House had positioned a successful bid of Rs 4,025 crore for Amtek Auto in July 2018, which was taken to insolvency by its lenders a yr earlier in July 2017. The decision plan included an upfront cost of Rs 3,225 crore for the lenders, and one other Rs 500 crore for “stabilising and improving” the operations of Amtek Auto.

Despite repeated makes an attempt by the lenders and the decision skilled, nonetheless, LHG didn’t go forward with the plan and cited “blatant discrepancies in the condition of machinery, valuations, and representations made in the information memorandum and valuation reports”.
This had irked the IBBI, which had then approached the SC searching for to provoke motion in opposition to the corporate for not following by means of with the decision plan. Apart from Amtek Auto, Gupta’s firm had additionally bid for ABG Shipyard and Bhushan Power however failed to finish the decision processes.