Invesco Mutual Fund initiates insolvency proceedings against Sintex Industries
Invesco Mutual Fund, also Invesco Asset Management (India) Private Ltd , has initiated corporate insolvency resolution process against Gujarat-based Sintex Industries after the latter 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. The scrip of the company closed at Rs 3.40 on NSE on 13 April 2021.
The company’s finances are in a mess with Rs 1,158 crore loss in the first nine month of the current financial year. In 2019-20, the company posted a loss of Rs 1,250 crore.
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