Sintex Inds slumps after approval of resolution plan

Resolution Plans submitted by four Resolution Applicants were put for e-voting for approval by the committee of creditors (CoC) members in accordance with the Insolvency and Bankruptcy Code, 2016 (Code). The e-voting on approval of Resolution Plan was concluded on 19 March 2022.

The resolution plan submitted by Reliance Industries jointly with Assets Care & Reconstruction Enterprise was duly approved by the 100% CoC members under Section 30(4) of the Code as the successful resolution plan, subject to approval of NCLT Ahmedabad.

As per approved Resolution Plan, it is proposed that existing share capital of Sintex Industries shall be reduced to zero and the company will be delisted from the stock exchanges i.e. BSE and NSE.

The interim resolution professional is in the process of filing an application in accordance with Section 30(6) of the Code for approval of the said Resolution Plan by the NCLT and intimation of the same shall be given to the members as required.

Sintex Industries is primarily engaged in the business of manufacture and sale of yarn and structured fabrics.

On a consolidated basis, Sintex Industries reported net loss of Rs 103.25 crore in Q3 December 2021 as against net loss of Rs 214.99 crore in Q3 December 2020. Net sales rose 80.01% to Rs 942.66 crore in Q3 December 2021 over Q3 December 2020.

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