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Reliance to buy polyester maker JBF Industries: Report

Sep 24, 2021
Reliance to buy polyester maker JBF Industries: Report

Reliance Industries (RIL) may take over stressed polyester manufacturer JBF Industries in consortium with CFM Asset Reconstruction Company (ARC), says a Financial Express report.

Bankers had sought takeover bids in July and the Ahmedabad based CFM ARC has put in Rs 8.25 billion bid for the company, that owes its lenders Rs 211.60 billion.

The auction was in the form of a Swiss challenge, where banks ask interested bidders to increase the existing bid for an asset. The original bidder gets the right of first refusal. In case of JBF, the RIL-backed bid by CFM ARC seems the only one.

According to a bid document, JBF Industries is engaged in the production of PET chips, which are of bottle grade, textile grade and film grade; polyester yarn, such as partially oriented yarn, polyester filament yarn, full drawn yarn and other specialised yarn; and PET films, which are of thin grade, thick grade and metallised grade. The company defaulted on its debt obligations due to its weakened liquidity position, according to a rating report by Care Ratings.

 

In 2020, RIL had acquired a 37.7% stake in textile firm Alok Industries and had participated in the bidding process for the company in consortium with JM Financial ARC.


Source: Financial Express

Image Source: Google Images

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