Reliance Industries, ACRE bid for Sintex filed before NCLT for approval

The joint bid of Reliance Industries and Assets Care & Reconstruction Enterprise (ACRE) for debt-ridden Sintex Industries has been moved before the NCLT for its approval after getting unanimously selected by the lenders of the textiles maker.

The resolution professional of Sintex Industries has filed the resolution plan by RIL and ACRE, as approved by the Committee of Creditors (CoC) before the Ahmedabad Bench of the National Company Law Tribunal (NCLT), said a regulatory filing.

"... we would like to inform that the Interim Resolution Professional of the Company has duly filed the resolution plan as approved by the CoC with the NCLT, Ahmedabad Bench on 23rd March, 2022, in accordance with Section 30(6) of the Insolvency and Bankruptcy Code, 2016," it said.

As per the IBC procedures, RP has to submit the resolution plan as approved by the CoC to NCLT under Section 30(6) of IBC, which gives its final approval.

Earlier this week, Sintex Industries, which is going through the insolvency resolution process, had informed CoC 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 p.m. and the resolution plan submitted by Reliance Industries Ltd jointly with ACRE has been duly approved by the 100 per cent CoC members," it had said.

Sintex Industries had also received bids from Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures along with Shrikant Himatsingka and Dinesh Kumar Himatsingka and were placed before CoC for consideration during the voting process.

Though Sintex Industries had not shared the value of joint bid by RIL & ACRE in the regulatory filing, some media reports claimed the amount to be around Rs 3,000 crore and lenders have taken a haircut of more than 50 per cent.

Insolvency proceedings against Sintex Industries were initiated in April last year. Claims of around Rs 7,500 crore have been admitted against the company.

Sintex Industries' revenue was at Rs 1,689.15 crore in FY 2020-21.