Sintex Industries clarifies on report of Reliance-ACRE, Welspun to buy firm

Sintex Industries on Tuesday clarified on the report stating that Reliance Industries Ltd (RIL) and Welspun are among the winning bidders to acquire the bankrupt textile company. The clarification stated that the said information as contained in the report "has not been shared by the Company."

Reliance Industries-ACRE and Welspun Group unit Easygo Textile Pvt Ltd are the two highest bidders among the four offers that lenders have received for the textile-cum-yarn making company, Economic Times reported earlier today citing sources.

RIL, in partnership with Assets Care & Reconstruction Enterprise (ACRE), offered a Rs 2,863 crore resolution plan that includes 10% equity to lenders, the report added.

To this, Sintex Industries clarified, "Presently, the company is under the Corporate Insolvency Resolution Process (CIRP) under the IBC Code 2016 and is making all necessary disclosures required to be disclosed under the said Code and the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015."

It also mentioned that on December 11, 2021, when the company had disclosed that pursuant to invitation for Expression of Interest (EoI) or resolution plans, it had received four resolution plans and the same are under evaluation by the Interim Resolution Professional and then shall be placed before the Committee of Creditors, for its further consideration.

"The Company is not in a position to comment further on any event/development, as the Committee of Creditors is under active consultation with all the Four Prospective Resolution Applicants for finalization of Resolution Plan," Sintex Industries stated, adding, "Necessary disclosure as required under Schedule III of SEBI LODR upon approval of Resolution Plan by the Committee of Creditors, post its detailed evaluation and the Company will further inform about filing of the Resolution Plan with the National Company Law Tribunal, in accordance with the LODR."

Lenders to Sintex Industries had got 16 expressions of interest (EoIs), including bids from foreign fund CarVal Investors and Varde Capital-backed Aditya Birla Asset Reconstruction Co. The other EoI applicants included Edelweiss Alternative Assets Advisors Ltd, Asset Reconstruction Company of India (Arcil), Prudent ARC, Ludhiana based Trident Ltd, Punjab-based Lotus Hometextile, Mumbai-based Indocount Industries and Nitin Spinners.

Sintex was founded in the 1930s as Bharat Vijay Mills, a composite textile mill in Kalol, Gujarat. Forty years later, it was rebranded as Sintex Industries, a cotton yarn and fabric maker.