Lenders to the debt-ridden Sintex Industries have approved Reliance Industries’ over £365 million bid for the Gujarat-based company. RIL, which has partnered stressed asset buyer Assets Care & Reconstruction Enterprise (ACRE) for the Sintex bid, has also offered a 15% equity to lenders. The RIL-ACRE resolution plan now needs the approval of NCLT-Ahmedabad. The grouping has proposed to write off the entire equity capital of Sintex and delist the stock from the bourses. This means that equity investors who own the Sintex stock will see their capital reduced to zero.
In a regulatory filing, Sintex said: “All four resolution plans were put for e-voting for approval by the creditors and the resolution plan submitted by RIL jointly with ACRE has been approved by 100% of the creditors. “It further said that according to the RIL-ACRE resolution plan, it is proposed that the existing share capital of the company shall be reduced to zero and the company will be delisted from the BSE and the NSE.
The resolution professional has admitted claims of £771.9 million from financial creditors, £7.4 million from operational creditors and £1.1 million from employees of Sintex. The Gujarat-based company, incorporated in 1931 as The Bharat Vijay Mills, reported a loss of £44.2 million on revenue of £207.7 million in the first nine months of FY22.
