Reliance-ACRE, Welspun in final lap to buy bankrupt Sintex Industries

Reliance NSE 0.41 % Industries Ltd (RIL) and Welspun NSE 1.18 % are the leading contenders to acquire bankrupt Sintex NSE -5.00 % Industries, said people with knowledge of the matter. RIL, in partnership with Assets Care & Reconstruction Enterprise (ACRE), has offered a ₹2,863 crore resolution plan that includes 10% equity to lenders,  ..

Reliance Industries-ACRE and Welspun Group unit Easygo Textile Pvt Ltd are the two highest bidders among the four firm offers that lenders have received for the textile-cum-yarn making company.

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“There is a marginal difference between the offers made by Reliance Industries-ACRE team and Welspun Group,” one of the persons said. “Both are highest but conditional. It is difficult to assess which of the two plans is better.”

Resolution professional Pinakin Shah has asked the two highest bidders to resubmit revised unconditional resolution plans, said the people cited above.

The RIL offer includes payment of ₹2,280 crore to financial creditors, equity infusion of ₹500 crore for working capital requirements and a ₹83 crore payment to employees and trade creditors, one of the persons said.

₹15.4 cr Payment Default
The existing equity will be fully written off. RIL will hold 79%, ACRE will hold 11% and 10% will go to lenders after the acquisition. To finance the proposed offer, RIL will avail debt of Rs 2,349 crore and infuse Rs 500 cro ..

RIL, ACRE, Welspun Group and the resolution professional (RP) didn’t respond to queries. The RP has allowed claims to the tune of Rs 7,534.6 crore from 27 financial creditors.

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Sintex Industries was admitted to the insolvency process by Invesco Asset Management after the company defaulted on a Rs 15.4 crore payment on principal and interest on non-convertible debentures.

An attempt to arrive at an out-of-court resolution failed after lenders rejected an offer of Rs 1,950 crore m ..

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