Debt-Ridden Sintex Industries' lenders Approve Joint Resolution Plan Of Reliance Industries, ACRE
The lenders of the debt-ridden textiles maker Sintex Industries have approved the joint bid of Reliance Industries and Assets Care & Reconstruction Enterprise to acquire the firm under the insolvency resolution process.
According to a regulatory filing released on Sunday, the Committee of Creditors (CoC) of Sintex Industries has unanimously voted in favour of the resolution plan by Reliance Industries and ACRE.
"The e-voting on approval of Resolution Plan was concluded on March 19, 2022, at 10.00 pm, and the 100 per cent CoC members have duly approved the resolution plan submitted by Reliance Industries Ltd jointly with ACRE," the filing said.
Sintex Industries has also received bids from Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures, Shrikant Himatsingka and Dinesh Kumar Himatsingka were placed before the CoC for consideration during the voting process.
Though Sintex Industries has not shared the quantum of joint bids by RIL and ACRE in the regulatory filing, some reports have claimed the amount to be around Rs 3,000 crore, and lenders have taken a haircut of more than 50 per cent.
The joint resolution plan of RIL and ACRE has proposed that "existing share capital of the Company shall be reduced to zero and the company will be delisted from the stock exchanges, i.e. the BSE and NSE".
Insolvency proceeding against Sintex Industries was initiated in April last year. Claims of around Rs 7,500 crore has been admitted against the company. As per the Insolvency & Bankruptcy Code procedures, the CoC has to approve a bid with at least a 66 per cent majority before it goes to the NCLT for final clearance. Sintex Industries'' revenue was at Rs 1,689.15 crore in FY2020-21.
For the October-December quarter, it had reported an 80 per cent jump in its consolidated revenue from operation to Rs 942.66 crore against Rs 523.66 crore a year ago.
It had also reported narrowing down its net loss to Rs 103.25 crore from Rs 214.99 crore in Q3 FY2020-21.
