The rally inCastex shares comes ahead of a UK court’s July 29 decision on $130 million bonds issued by the company.
Castex Technologies (formerly known as Amtek India) is a subsidiary of auto component maker Amtek Auto. It is a supplier of iron cast automotive components.
The company has been in news recently for different reasons. Today, the company in a clarification to a news report said that “the lenders of the company in joint lending forum have proposed strategic debt restructuring (SDR). However, the proposed SDR is not yet approved.”
Castex Technologies had reported a net loss of Rs 467 crore in the March quarter. The company had debt of around Rs 4,800 crore as of March 2016.
On July 15, the company clarified that “certain funds have initiated proceedings before the UK Commercial Court relating to $130 million bonds issued by Castex, citing allegation of share price manipulation in connection with the conversion of the said bonds into equity shares.”
The court has fixed the matter for procedural directions on July 29, 2016, the company added.
On June 14, 2016, Castex Technologies informed the stock exchanges that Citicorp has dropped legal proceedings brought on behalf of bondholders of $70 million bonds in the Commercial Court in London.
This follows the UK Commercial Court ruling in favour of Castex on February 24, the company said.
Despite the recent rally, Castex shares are down 95 per cent from its year-earlier levels of Rs 295 amid concerns over its high debt levels.
At 11:35 a.m., shares of Castex were up nearly 4.70 per cent at Rs 12.2, outperforming a Mumbai market which was up 0.5 per cent.