Sintex Industries has informed that lenders to the company have, in principle, agreed to sell their debt to the government-promoted asset reconstruction company due to inordinate delay by the bankruptcy court in approving the resolution plan, according to the sources related to the development told “Economic Times”.
Accordingly, nearly 97% of lenders voted for Rs3,651-crore plan given by Reliance Industries in partnership with Assets Care & Reconstruction Enterprise (ACRE) in March this year.
Further, the Ahmedabad NCLT is scheduled to hear the matter on a resolution plan on December 7, according to the tribunal’s website.
Several issues are being heard at the tribunal, potentially delaying the resolution. Axis Bank has filed a petition with the tribunal opposing the distribution of the proceeds from the winning resolution applicant. Axis Bank was the only bank that voted against the resolution plan.
Insolvency proceeding against Sintex Industries was initiated last year during Apri month. Claims of around Rs7,500 crore has 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% majority before it goes to the NCLT for final clearance.
Net Loss of Sintex Industries reported to Rs277.93 crore in the quarter ended September 2022 as against net loss of Rs181.92 crore during the previous quarter ended September 2021. Sales rose 12.57% to Rs692.16 crore in the quarter ended September 2022 as against Rs614.87 crore during the previous quarter ended September 2021.
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