Reliance and Welspun lead bids to acquire bankrupt Sintex
Reliance Industries Limited and Welspun Group have taken the lead in the bidding to acquire bankrupt textiles business Sintex Industries.
For its bid to acquire Sintex, RIL has partnered with asset reconstruction business Assets Care & Reconstruction Enterprise to offer a resolution plan with a value of Rs 2,863 crore ($430.3 million), the Economic Times reported. The plan includes a 10% equity offer to lenders and a Rs 500 crore capital infusion.
For its part, Welspun Group has made an offer through its Easygo Textile Private Limited unit. “There is a marginal difference between the offers made by Reliance Industries-ACRE team and Welspun Group,” an anonymous source close to the matter told the Economic Times. “Both are highest but conditional. It is difficult to assess which of the two plans is better.”
Sintex Industries’ lenders received a total of four firm resolution plans at the end of 2021. The other two businesses which have made offers are textiles, salt, and consumer products business GHCL Limited and integrated global textile major Himatsingka Ventures Private Limited.
Ahmedabad-based Sintex Industries was admitted into the insolvency process by Invesco Asset Management when it defaulted on a payment of principal and interest on non-convertible debentures of Rs 15.4 crore. Attempts to reach an out-of-court settlement proved impossible.
Copyright © 2022 FashionNetwork.com All rights reserved.