Creditors push Sintex Industries towards bankruptcy

Kalol, Gujarat

Sintex Industries, a popular
textile and yarn manufacturer, was admitted on a plea by the insolvency
tribunal over a Rs 155 million debt default. This is based on a request by Invesco
Asset Management (India) Pvt Ltd. Soon after Sintex
Industries disclosed in June 2019 about a Rs 900 million default on bonds,
Invesco Asset Management (India) Pvt Ltd, a popular financial creditor, filed a
petition against the Gujarat-based firm. 
An insolvency tribunal has recently admitted to the plea over the firm’s
Rs 155 million debt default in September 2019.The tribunal has further rejected
a petition from Punjab National Bank to allow the lender to file the claims
only under the insolvency process.

It is to be noted that KKR,
another private equity firm, also had approached the tribunal for a loan amount
it has sanctioned 2 years ago. The principal sum offered to Sintex was Rs 11.9 billion,
not including the interest.

As of December 2020, the firm had
a net loss of Rs 2150 million. In December’s financial statement, the firm had
mentioned that it is working with the lenders to bring out a resolution plan.

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