Sintex: RIL-ACRE's offer gets 90% lender support

By

Isabelle Crossley

Published
Mar 21, 2022

Over 90% of Sintex Industries Limited’s lenders voted in support of the Reliance Industries Ltd- Assets Care and Reconstruction Enterprise Ltd consortium bid for the bankrupt textile business. 

As the voting on bids for Sintex drew to a close on the evening of March 19, lenders were showing overwhelming support for the RIL-ACRE bid, ahead of three other resolution applicants: a Welspun business entity, Himatsingka Ventures, and GHCL, ET Bureau reported. The business’ resolution professional, Pinakin Shah, had asked the committee of creditors to vote on the four resolution plans by March 10, but the deadline was extended twice. 
 
Following the voting, the resolution professional will need to submit the RIL-ACRE resolution plan for Sintex to the Ahmedabad branch of the National Company Law Tribunal to gain its approval. Of the four bids, the RIL-ACRE plan was the highest and totalled Rs 3,651. The RIL-ACRE plan also includes offering 15% equity to verified lenders. 

Sintex’s lenders had requested a second round of bidding on the business in February as they were not satisfied with each of the four bidders’ initial offers. RIL-ACRE increased its bid a third time to push it over the liquidation value of the business.