Reliance Industries and Assets Care & Reconstruction Enterprise (ACRE) have secured approval for their joint bid to acquire debt-ridden textiles maker Sintex Industries from the National Company Law Tribunal (NCLT). The Ahmedabad bench of the NCLT gave an oral order on Friday approving the resolution plan submitted by RIL and ACRE.
Sintex industries in a regulatory filing said, “NCLT has orally pronounced an order” on Friday “approving the resolution plan submitted jointly by Reliance Industries Limited and Assets Care & Reconstruction Enterprise Ltd,”
The plan includes the reduction of share capital and delisting of equity shares with nil value. Sintex Industries stated that it would provide further updated disclosures when the written order is made available.
As per reports, Sintex’s lenders had voted in favour of the joint bid by Reliance industries and ACRE. Following the lender’s approval of the joint bid, the resolution professional of the company moved the NCLT for its final approval.
According to the Insolvency and Bankruptcy Code, the resolution professional must submit the resolution plan approved by the Committee of Creditors to the National Company Law Tribunal (NCLT) under Section 30(6) of the IBC, which provides the final approval.
Other bidders for Sintex Industries included Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures, along with Shrikant Himatsingka and Dinesh Kumar Himatsingka
“Currently, the Corporate Debtor (Sintex Industries) is operating at less than its optimal capacity. With RIL’s relevant experience across textile value chain and ACRE’s domain knowledge in resolution of stressed assets, they will bring efficiencies through gap identification an process controls and strengthen the management of the Corporate Debtor” a statement by Sintex industries read.
The insolvency proceeding against Sintex was started in April last year and around 7,500 crore worth of claims have been admitted against the company so far.