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Amtek Auto Ltd.: From Acquisitions to a Financial Crisis
內容大綱
In the summer of 2015, India-based Amtek Auto Ltd., one of the country’s largest companies in the manufacturing of automotive components, was on the brink of financial ruin. After more than a decade of being immersed in a spending spree on acquisitions to build capacity and expand its clientèle in both the European and Asian auto markets, Amtek’s stock plummeted by 50 per cent within two days as nervous investors worried about the company’s ability to make its scheduled debt payments. Tensions were high as the company faced mounting pressure over its liquidity issues, and after reporting a net loss for the first time in two decades. With rumours of bankruptcy on the horizon, what steps could the company take to decrease its debt burden at a time when the automotive industry was in a slump? Should Amtek consider selling off some of its assets to raise the needed cash, or should it look to banks and investors?
學習目標
This case is suitable for use in MBA and other graduate-level management programs in courses in corporate finance, strategic fiscal management, and debt financing. Within corporate finance settings, this case could be used in the capital structure decisions module to study the development of a firm’s debt policies in light of the costs and benefits of debt. After completion of the case, students will be able to:<ul><li>Identify the drivers of business and financial pitfalls.</li><li>Understand the trade-off of leverage in terms of cost and benefit of debt.</li><li>Identify the links between a firm’s investment, capital structures, and dividend decisions.</li><li>Appreciate the strategies to generate cash flows for a firm by managing assets and liabilities.</li><ul>