Sintex lenders to seek extra time from NCLT to complete resolution process

Lenders of Sintex Industries will approach the National Company Law Tribunal (NCLT) to seek an extension of time for the completion of the Corporate Insolvency Resolution Process (CIRP) and select a bidder for the debt-ridden textiles maker.

The Committee of Creditors (CoC) in a meeting held on Monday "discussed and approved the proposal for extension of CIRP period beyond 330 days", Sintex Industries said in a regulatory filing.

An application in this regard will be filed before the Ahmedabad bench of NCLT for the same, it added.

Under the Insolvency & Bankruptcy Code, a CIRP has to be concluded within a maximum limit of 330 days, failing which the company has to face liquidation.

Four companies, including Reliance Industries, are in the race to acquire Sintex Industries and have filed their bids, on which CoC has to take a decision through a voting process.

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 month, Sintex Industries had said that the Interim Resolution Professional received revised Resolution Plans for the company from all four Prospective Resolution Applicants (PRA).

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

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