Reliance Industries-ACRE wins bid to acquire Sintex Industries, proposes to delist shares

Industry:    

Sintex Industries’ lenders have approved the joint bid of Reliance Industries (RIL) and Assets Care & Reconstruction Enterprise (ACRE) to acquire the debt-ridden textiles firm under the insolvency resolution process. The Committee of Creditors (CoC) of Sintex Industries has unanimously voted in favour of the resolution plan by Reliance Industries and ACRE, the company announced in an exchange filing.

“As per Resolution Plan of Reliance Industries Limited jointly with Assets Care & Reconstruction Enterprise Limited it is proposed that existing share capital of the company shall be reduced to Zero and the Company will be delisted from the stock exchanges i.e. BSE and NSE,” the company said.

Sintex Industries has also received bids from Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures along with Shrikant Himatsingka and Dinesh Kumar Himatsingka and were placed before the CoC for consideration during the voting process.

Insolvency proceeding against Sintex Industries was initiated in April last year. Claims of around 7,500 crore has been admitted against the company. As per the procedures under the Insolvency & Bankruptcy Code, the CoC has to approve a bid with at least a 66% majority before it goes to the NCLT for final clearance.

Sintex further added that the Interim Resolution Professional is in the process of filing an application for approval of the said resolution plan by the NCLT and intimation of the same shall be given to the members as required.

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