A partnership of Reliance Industries (RIL) and Assets Care & Reconstruction Enterprise Ltd have reportedly won the bid to acquire stressed yarn and textile manufacturer Sintex Industries Ltd.
In a stock exchange filing, the debt-ridden company revealed that the resolution plan provided by RIL in coalition with ACRE had been approved by the 100% committee of creditors (CoC) members as the resolution plan, subject to the approval of Hon’ble National Company Law Tribunal (NCLT) Ahmedabad’s.
As per the approved resolution plan, it is propositioned that Sintex’s current share capital shall be brought to zero and the company will be delisted from NSE and BSE.
Apart from ACRE’s and RIL plan, GHCL Ltd, Welspun Group’s Easygo Textiles, Dinesh Kumar Himatsingka, and Shrikant Himatsingka as well as Himatsingka Ventures Pvt Ltd were among the four potential applicants that submitted their proposals to acquire Sintex Industries.
In the filing, Sintex also stated that all four submitted plans were contested through e-voting for CoC approval. The IRP, or Interim Resolution Professional, is in the process of applying to approve the resolution plan of RIL and ACRE before the NCLT’s Ahmedabad bench.
IRP Pinakin Shah has taken in claims worth approximately USD 988 million (Rs 7,534.6 crore) in claims from nearly 27 financial creditors comprising Axis Bank, HDFC Bank, Aditya Birla Finance, RBL, Life Insurance Corporation, IndusInd Bank, Punjab National Bank, State Bank of India, Karnataka Bank, and Punjab & Sind Bank.
Shah received 16 EOIs (expressions of interest) in October from applicants including Aditya Birla Asset Reconstruction Company (ARC) in collaboration with Easygo Textiles, and Avenue Capital-backed ARCIL (Asset Reconstruction Company of India Ltd) under the process of bankruptcy.
Last year, Sintex Industries stated that it has been collaborating with lenders to introduce a resolution plan to replace its business activities. In August 2021, KKR’s non-bank lending arm approached the tribunal to stand against Sintex Plastics Technology’s subsidiary to recover the debt it approved two years ago.
Source credit:
