JOIN USReliance-ACRE, Welspun frontrunners to acquire bankrupt Sintex Industries: Report
Reliance Industries and Welspun Group have emerged as frontrunners to acquire the bankrupt Sintex Industries, according to a report by The Economic times quoting sources.
Reliance, which is working with Assets Care & Reconstruction Enterprise, has offered a Rs 2,863-crore resolution plan, which includes 10 per cent equity to lenders.
"There is a marginal difference between the offers made by Reliance Industries-ACRE and Welspun Group," a source told the publication. "Both are highest but conditional. It is difficult to assess which of the two plans is better."
The offer by Reliance includes payment of Rs 2,280 crore to creditors, equity infusion of Rs 500 crore for working capital requirements and a Rs 83 crore payment to employees and trade creditors, the report said.
If the deal goes through under Reliance, the existing equity will be fully written off, with RIL taking 79 per cent of its stake, ACRE getting 11 per cent and 10 per cent going to lenders. While RIL will avail a debt of Rs 2,349 crore and infuse Rs 500 crore as capital, ACRE will issue security receipts for Rs 14 crore to lenders, the report said, adding that details of the Welspun offer are not available.
Sintex 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 made by Welspun in January 2021 to acquire the company.
Lenders to Sintex Industries had received 16 expressions of interest (EoIs), including bids from foreign fund CarVal Investors and Varde Capital-backed Aditya Birla Asset Reconstruction Co, the report said. 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.
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