A joint consortium of Mukesh Ambani-owned Reliance Industries (RIL) along with Ares SSG Capital-backed Assets Care & Reconstruction Enterprise Ltd has received approval from bankers as the successful bidder to acquire stressed textile-and-yarn-maker Sintex Industries Ltd.
“…the resolution plan submitted by Reliance Industries Limited jointly with Assets Care & Reconstruction Enterprise Limited (ACRE) has been duly approved by the 100% CoC (committee of creditors) members…as the successful resolution plan subject to approval of Hon’ble NCLT Ahmedabad,” the debt-ridden firm informed in a stock exchange filing.
Under the approved resolution plan, it is proposed that existing share capital of Sintex Industries shall be reduced to zero and the Company will be delisted from the stock exchanges i.e. BSE and NSE, the filing added.
In December, besides RIL and ACRE’s plan, Welspun Group’s Easygo Textiles, GHCL Ltd, Himatsingka Ventures Pvt Ltd, and Shrikant Himatsingka and Dinesh Kumar Himatsingka were among the four prospective applicants that submitted their plans to acquire Sintex Industries.
All four compliant resolution plans submitted by four bidders were put for e-voting for approval by the CoC. The bidding approval was concluded on March 19 at 10 pm.
The Interim Resolution Professional (IRP) is in the process of filing an application for approval of the RIL and ACRE’s resolution plan before the Ahmedabad bench of the National Company Law Tribunal (NCLT), Sintex Industries said in the filing.
IRP Pinakin Shah has admitted Rs 7,534.6 crore in claims from 27 financial creditors including HDFC Bank, Axis Bank, RBL, Aditya Birla Finance, IndusInd Bank, Life Insurance Corporation, State Bank of India, Punjab National Bank, Punjab & Sind Bank and Karnataka Bank.
In October, Shah received 16 expressions of interest (EOIs) from applicants including Varde Capital-backed Aditya Birla Asset Reconstruction Company (ARC) in partnership with Easygo Textiles, and Avenue Capital-backed Asset Reconstruction Company of India Ltd (ARCIL) under the bankruptcy process.
The insolvency tribunal had admitted Sintex Industries in April last year on a plea by Invesco Asset Management (India) Pvt Ltd over a Rs 15.4 crore default in September 2019.
Parent Sintex Industries last year had said that it has been working with lenders to bring a resolution plan in place for its business activities.
Sintex Industries' subsidiaries include BVM Overseas, Sintex-BAPL and publicly listed Sintex Plastics Technology.
In August last year, the non-bank lending arm of global private equity firm KKR approached the tribunal to stand against a subsidiary of Sintex Plastics Technology to recover debt it had sanctioned around two years ago.
