Kalol, Gujarat
The National Company Law Tribunal (NCLT) has admitted an insolvency petition against Sintex Industries, a popular textile and yarn manufacturer in India, as it failed to pay around Rs 70 billion to creditors, led by Punjab National Bank (PNB).
According to some people familiar with the negotiations, Sintex tried to complete a onetime settlement with Welspun Group, which offered 74% haircut and a long payback period. This offer was rejected at the joint lenders forum as it was very low and involved a three-year repayment period.
Due to the economic disruption caused by the Covid-19 pandemic, banks failed to close the deal with Welspun that offered Rs 18 billion for the Rs 70 billion debt. Delhi-based Punjab National Bank is the lead leader to Sintex Industries. Other lenders include Bank of Baroda, Union Bank of India, and Bank of India.
As per the data in September, 2020, PNB declared its exposure to the company as fraud. The bank provided Rs 2.15 billion and the lenders have been trying to settle the debt for more than two years now.
Sintex Industries and Sintex Plastics Technology, a household brand name of water tanks in India, were separated in 2017.
Source: The Economic Times
Image Source: http://www.sintex.in/
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