Mumba: Loss-making heavy truck maker Asia Motor Works has said it has approached its lenders to restructure Rs 800 crore of its debt.
"We have approached our lenders for restructuring around Rs 800 crore of our debt. We hope it works out," company's Managing Director Aniruddh Bhuwalka told PTI.
He, however, did not reveal details like the total debt or the name of lenders, saying AMW, which is the third largest truck maker in the country, is a privately held concern.
However, it is learnt that Chennai-based Indian Overseas Bank (IOB) is the lead lender to the troubled company.
This, however, could not be independently verified with IOB as its Chairman and Managing Director M Narendra was not immediately available for comments.
Asia Motor Works (AMW) is also believed to have borrowed from six other public sector banks.
Explaining the reason for knocking on doors of lenders with a CDR request, Bhuwalka said, "This fiscal so far, my sales have fallen by over 50 percent. Neither I see some greenshoots coming in the near future. So, to secure the business as a whole, this is the best available options in front of me".
AMW, which manufactures mining trucks and construction equipment, has been hit hard in the economic slowdown. Its business got impacted as construction activities have been hardly taking place of late, especially in the large infra sectors like roads.
Last year, it had put on hold its fund-raising plans through private equity.
Other than trucks, the company also manufactures components for the automotive and general engineering industries.
The company is the largest single-location plant for wheel rims in Asia. While its trucks, all of which have AC cabins, the first in the country, are priced 15-20 percent above Tata and Leyland, they are over 50 percent cheaper than Volvo.
AMW, which sold 10,000 trucks last fiscal, claims an overall market share of 6 percent and 25 percent in mining and construction equipment segment of the truck business, respectively.
It also exports to the Saarc region and has plans to enter the Middle East and North African region with its new generation products.