Reliance-ACRE combine wins race for ailing textile firm Sintex Industries

Lenders approve resolution plan with 100% vote

Lenders to ailing textile firm Sintex Industries Ltd (SIL) have approved a resolution plan submitted by Reliance Industries Ltd (RIL) jointly with Assets Care & Reconstruction Enterprise Ltd (ACRE).

The plan (RIL-ACRE) has been duly approved by the 100 per cent members of Committee of Creditors (CoC) as the successful resolution plan subject to approval of National Company Law Tribunal (NCLT), the company informed BSE.

Gujarat based SIL said all four compliant Resolution Plans submitted by four Resolution Applicants were put for e-voting for approval by the CoC members in accordance with the Insolvency and Bankruptcy Code, 2016 (Code) and regulations. The e-voting concluded On March 19, 2022 at 10.00 p.m.

The plan is that existing share capital of the Company will be reduced to Zero. The company will be delisted from the stock exchanges i.e. BSE and NSE.

The lenders to the company include Punjab National Bank, Bank of India, Bank of Baroda, Export Import Bank of India, HDFC Bank and Axis Bank. Lenders – members of CoC - exposure to SIL is about Rs 7,718.72 crore, according to filing with BSE.

SIL has been undergoing substantial financial stress and severe liquidity constraints since last Financial Year. Coupled with changed industrial dynamics, it has been facing time and cost overrun in completion of projects, reduction in subsidies and incentive benefits and Covid related disruptions.