Sintex Industries' lenders have approved Reliance Industries' and ACRE's joint resolution plan.
Sintex Industries' lenders have authorised a joint bid by Reliance Industries and Assets Care & Reconstruction Enterprise to buy the company through the insolvency resolution process.
According to a regulatory document filed on Sunday, Sintex Industries' Committee of Creditors (CoC) voted unanimously in favour of the resolution plan proposed by Reliance Industries and ACRE.
"The e-voting on approval of Resolution Plan was completed on March 19, 2022, at 10.00 pm, and the resolution plan filed by Reliance Industries Ltd together with ACRE has been duly approved by the 100% CoC members," according to the statement.
Sintex Industries has also received offers from Welspun Group firms Easygo Textiles, GHCL, and Himatsingka Ventures, as well as Shrikant Himatsingka and Dinesh Kumar Himatsingka, which have been submitted to the CoC for consideration during the voting process.
Though Sintex Industries did not disclose the value of the joint bids by RIL and ACRE in the regulatory filing, some reports indicate the sum is about Rs 3,000 crore, and lenders have taken a more than 50% haircut.
The joint resolution proposal of RIL and ACRE proposes that "the Company's existing share capital be reduced to zero and the Company be delisted from the stock markets, namely the BSE and NSE."
Sintex Industries was placed into insolvency in April of last year. Claims totaling around Rs 7,500 crore have been admitted against the corporation. According to the procedures outlined in the Insolvency and Bankruptcy Code, the CoC must approve a bid with at least a 66% majority before it is sent to the NCLT for final approval.
Sintex Industries' revenue in FY2020-21 was Rs 1,689.15 crore.
It recorded an 80% increase in consolidated revenue from operations to Rs 942.66 crore for the October-December quarter, compared to Rs 523.66 crore the previous year.
It also recorded a decrease in net loss to Rs 103.25 crore from Rs 214.99 crore in the third quarter of fiscal 2020-21.