Welspun Group acquires Sintex-BAPL for Rs 1,251 crore
The National company Law Tribunal (NCLT) has approved the Rs 1,251 crore resolution plan submitted by Propel Consortium – a consortium consisting of two entities of Welpun Group – for Sintex-BAPL Limited.
The resolution plan provides for Rs 1,243 crore to financial creditors (out of their admitted claims of Rs 2,900 crore), Rs 5 crore to operational creditors and Rs 2 crore for workmen and employees.
As per the provision of the resolution plan of Welspun Group, if there is any increase in admitted claim amount for workmen and employees, then the same would be paid at actuals such that the Operational Creditor discharge amount is capped at Rs. 7.67 crore.
There is a provision of Rs. 392.40 crore in the resolution plan for the payment of debts of the dissenting financial creditor — Asset Reconstruction Company India Limited.
During the pendency of the CIRP of the Corporate Debtor, Asset Reconstruction Company India Limited has taken over debts of HDFC Bank, Incred Financial Services Limited, State Bank of India, and Bank of Baroda etc. (by way of a deed of assignment). All of them were original CoC members.
The resolution amount is more than the liquidation value of the assets of Sintex-BAPL Ltd. The liquidation value is estimated by the RP to be Rs 1,208 crore.
The insolvency application against Sintex-BAPL Limited was filed by operational creditor Zielen Industries for defaulting on a payment of Rs 40.68 lakh.
Sintex-BAPL Ltd. is incorporated in the year 2007 as the fully owned subsidiary of Sintex Holding B V , Netherlands. The company uses plastic as a medium to provide innovative solutions to the automotive industry. It has established a process for integrating the design, engineering & manufacturing through which knowledge acquired in different platforms are deployed across the locations. The company employs range of plastic technologies like Injection moulding with gas assisted PEP & sequential flow technology, blow moulding, vacuum forming, PU foaming, vibration welding , ultrasonic welding , PU painting , sub-assemblies , LRTM , thermoset injection & compression molding.
The Propel Consortium consists of Propel Plastic Products Private Limited and Plastauto Private Limited, both Welspun Group entities.
Also Read: NCLT approves Rs 3,651-crore joint bid by Reliance Industries, ACRE for Sintex Industries
