Welspun Corp acquires NCDs of Sintex under CIRP

Welspun Corp announced the acquisition of Sintex BAPL's (SBAPL) Senior Secured Unlisted Non-Convertible Debentures (NCDs) having a face value of Rs. 100,000 each with an outstanding of Rs. 1128.8 crore for a purchase price of Rs. 386.9 crore by the company's wholly-owned subsidiary viz. Mahatva Plastic Products And Building Materials Private Limited (MPPBMPL) from existing Lenders of SBAPL. These NCDs have an exclusive pledge of over 100% equity shares of SBAPL along with First & Pari Passu charge on the movable fixed assets of SBAPL.

SBAPL is a company incorporated in India having its registered office in Ahmedabad with 3 major lines of business viz. 1) Plastic Products (PP) - Water Tanks, Interiors & Institutional Products; 2) Indian Custom molding (ICM) - Automobile plastic molded parts; and 3) BR Rototech - Fuel Tanks for Auto. Before getting into financial stress, SBAPL achieved a turnover of ~Rs. 1,700 crore in FY '19 with an EBITDA of ~Rs. 270 crore (16.1% Margin).

 

BAPL is currently undergoing the corporate insolvency resolution process under the provisions of the Insolvency and Bankruptcy Code, 2016. Welspun Corp is desirous of working harmoniously with other lenders of Sintex BAPL to resolve the insolvency situation of SBAPL at the earliest in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.

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