RIL, Welspun Group among four to bid for Sintex Industries
Reliance Industries and Welspun Group are among the four companies which have bid for acquiring Sintex Industries Ltd, a company undergoing the Corporate Insolvency Resolution Process (CIRP).
The corporate debtor informed in an exchange filing that Reliance Industries Limited jointly with Assets Care & Reconstruction Enterprise Limited; Easygo Textiles Private Limited (WELSPUN Group); GHCL Limited and Himatsingka Ventures Private Limited and Shrikant Himatsingka and Dinesh Kumar Himatsingka have submitted their resolution plans for Sintex Industries.
The resolution plans will be evaluated by the Interim Resolution Professional and then will be placed before the Committee of Creditors, for its further consideration.
The Interim Resolution Professional had published the brief particulars of Invitation for Expression of Interest for Resolution Plans in Form-G on 11th June 2021 and the same had been Extended/ Revised on 2 August 2021.
The insolvency proceeding against Ahmedabad-based Sintex Industries was initiated by Invesco Asset Management (India) Private Ltd, after the former defaulted on a payment on Rs 15.40 crore on the due date.
The Ahmedabad bench of the National Company Law Tribunal through an order on 6 April 2021 admitted insolvency application of Invesco Mutual Fund after the tribunal found that all the documents furnished by the financial creditor (Invesco Mutual Fund) established the debt and default on part of Sintex Industries.
As per the facts of the case, Invesco Mutual Fund bought 150 secured non-convertible debentures of face value Rs 10 lakh each bearing a coupon rate of 10.7% from the secondary market on 4 December 2014.
The default occurred on 30 September 2019 towards payment of principal of Rs 15 crore and interest of 10.7%. As on 30 September 2019, the total outstanding was Rs 15.40 crore along with 2% annual interest till the time of payment of the outstanding.
Ahmedabad-based Pinakin Shah has been appointed as the Interim Resolution Professional.
Sintex Industries is an eight-decade old company which is into manufacturing of textiles and yarns. It is listed on both National Stock Exchange and Bombay Stock Exchange.
Reliance Industries has earlier acquired another textile company – Alok Industries – through a corporate insolvency resolution process.
Also See: Invesco Mutual Fund initiates insolvency proceedings against Sintex Industries
