The lenders of the debt-ridden textiles maker Sintex Industries have approved the joint bid of Reliance Industries and Assets Care & Reconstruction Enterprise to acquire the firm under the insolvency resolution process.
The Committee of Creditors (CoC) of Sintex Industries has unanimously voted in favor of the resolution plan by Reliance Industries and ACRE, according to a regulatory filing released on Sunday.
"The e-voting on approval of Resolution Plan was concluded on March 19, 2022, at 10.00 pm and the resolution plan submitted by Reliance Industries Ltd jointly with ACRE has been duly approved by the 100 per cent CoC members," the filing 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.
Though Sintex Industries has not shared the quantum of joint bids by RIL and ACRE in the regulatory filing, some reports have claimed the amount to be around Rs 3,000 crore and lenders have taken a haircut of more than 50 per cent.
The joint resolution plan of RIL and ACRE has 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".
Insolvency proceeding against Sintex Industries was initiated in April last year. Claims of around Rs 7,500 crore have 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 per cent majority before it goes to the NCLT for final clearance.
Sintex Industries'' revenue was at Rs 1,689.15 crore in FY2020-21.
For the October-December quarter, it had reported an 80 per cent jump in its consolidated revenue from operation to Rs 942.66 crore against Rs 523.66 crore a year ago.
It had also reported narrowing down its net loss to Rs 103.25 crore from Rs 214.99 crore in Q3 FY2020-21.