Reliance ACRE, Welspun Compete to Buy Sintex Industries

Reliance ACRE, Welspun Compete to Buy Sintex Industries

Reliance Industries Ltd (RIL) and Welspun are the leading contenders to acquire bankrupt SintexIndustries, said people with knowledge of the matter.

Gujarat

RIL, in partnership with Assets Care & Reconstruction Enterprise (ACRE), has offered a Rs 28.63 billion resolution plan that includes 10% equity to lenders, they said.

Reliance Industries-ACRE and Welspun Group unit Easygo Textile Pvt Ltd are the two highest bidders among the four firm offers that lenders have received for the textile-cum-yarn making company. Resolution professional Pinakin Shah has asked the two highest bidders to resubmit revised unconditional resolution plans, said the people cited above.

Details of the Welspun offer are not available. Lenders to Sintex Industries got four firm resolution plans last month. GHCL Ltd and Himatsinka Ventures Pvt Ltd are the other two bidders, as reported earlier. RIL, ACRE, Welspun Group and the resolution professional (RP) didn’t respond to queries.

Sintex Industries was admitted to the insolvency process by Invesco Asset Management after the company defaulted on a Rs 15.4 crore payment on principal and interest on non-convertible debentures. An attempt to arrive at an out-of-court resolution failed after lenders rejected an offer of Rs 19.50 billion made by Welspun in January last year to acquire the distressed Ahmedabad-based company.

Lenders to Sintex Industries had got 16 expressions of interest (EoIs), including bids from foreign fund CarVal Investors and Varde Capital-backed Aditya Birla Asset Reconstruction Co. The other EoI applicants included Edelweiss Alternative Assets Advisors Ltd, Asset Reconstruction Company of India (Arcil), Prudent ARC, Ludhiana based Trident Ltd, Punjab-based Lotus Hometextile, Mumbaibased Indocount Industries and Nitin Spinners. Sintex Industries, which was promoted by Amit Patel and family, specialises in the premium fashion industry. It provides fabric to global clients such as Armani, Hugo Boss, Diesel and Burberry, according to the company’s website.

Source: The Economic Times

Image Source: Google Images

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