Sintex Industries insolvency in final stages, company receives revised bids

Four companies, including Reliance Industries, competing for Sintex Industries have revised their bids that will now be placed before Committee of Creditors of debt-ridden textiles maker for approval.

Four companies, including Reliance Industries, competing for Sintex Industries have revised their bids that will now be placed before the Committee of Creditors (CoC) of the debt-ridden textiles maker for approval.

Mukesh Ambani-led Reliance Industries Ltd is jointly bidding with Assets Care & Reconstruction Enterprise for Sintex Industries and according to some media reports, the amount is around Rs 2,800 crore.

The resolution professional of Sintex Industries has also received bids from Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures along with Shrikant Himatsingka and Dinesh Kumar Himatsingka

Last week, Sintex Industries had informed that the Interim Resolution Professional has received revised Resolution Plans for the company from all four Prospective Resolution Applicants (PRA).

"Revised Resolution Plans received from all four PRAs shall be evaluated by the Interim Resolution Professional and then shall be placed before the Committee of Creditors, for its further consideration," Sintex Industries had said in a regulatory filing on February 2.

The National Company Law Appellate Tribunal (NCLAT) was also informed last week about the progress of the Corporate Insolvency Resolution Plan (CIRP) of Sintex Technologies.

"Learned Counsel appearing for the Respondent submits that the process in CIRP is at the final stage. Resolution Plan has been submitted. He seeks adjournment for three weeks," the NCLAT had recorded in its order while adjourning the matter.

The NCLAT was hearing the matter filed by Sintex Industries former promoter Amit Dineshchandra Patel against the order of the Ahemdabad bench of the National Company Law Tribunal (NCLT).

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

On January 25, the Committee of Creditors (CoC) held its 15th meeting.

As per the procedures under the Insolvency & Bankruptcy Code, the IRP would place the bids before CoC, which will approve with at least a 66 per cent majority before it goes to the NCLT for final clearance.

Sintex Industries last week announced its financial result for the October-December quarter, reporting an 80 per cent jump in its consolidated revenue from operation to Rs 942.66 crore as against Rs 523.66 crore a year ago.

It had also reported narrowing down its net loss to Rs 103.25 crore from Rs 214.99 crore in Q3 FY2020-21.