NCLT approves joint bid of RIL-ACRE to acquire insolvent Sintex Industries

20 Feb 2023 , 12:31 PM

The Ahmedabad bench of National Company Law Tribunal (NCLT) has given approval to acquire debt-ridden textile maker Sintex Industries. Reliance Industries and Assets Care & Reconstruction Enterprise (ACRE) has made joint bid on the company. The NCLT gave an oral order on Friday approving the resolution plan submitted by RIL and ACRE.

As per the reports, the approval includes reduction in share capital and delisting of the shares at nil. The joint bid of RIL-ACRE offered around Rs 3,650 crore.

Sintex Industries would make updated disclosure upon the written order being made available.

Creditors of Sintex Industries voted in favor of RIL & ACRE’s joint bid, after which the company’s resolution professional moved the NCLT for final approval in March last year.

Under the Insolvency and Bankruptcy Code, the RP has to submit a resolution plan as approved by the CoC, NCLT under Article 30(6) of the IBC which gives its final approval.

Sintex Industries also received bids from Welspun Group of Easygo Textiles, GHCL and Himatsingka Ventures along with Shrikant Himatsingka and Dinesh Kumar Himatsingka.

Insolvency proceedings with Sintex Industries were initiated in April last year. Claims of around Rs 7,500 crore were awarded against the company.