Sintex Industries resolution: NCLT approves joint bid of RIL, ACRE

The National Company Law Tribunal (NCLT) has approved the joint bid of Reliance Industries and Assets Care & Reconstruction Enterprise (ACRE) for debt-ridden textiles maker Sintex Industries.

The Ahmedabad bench of the NCLT in an oral order on Friday approved the resolution plan by RIL and ACRE, Sintex Industries said in a regulatory filing.

"NCLT has orally pronounced an order" on Friday "approving the resolution plan submitted jointly by Reliance Industries Limited and Assets Care & Reconstruction Enterprise Ltd," Sintex Industries said.

The approved Reliance-ACRE plan contains the reduction of share capital and delisting of equity shares with nil value, it added.

The company would make updated disclosure upon the written order being made available, it added.

According to reports, RIL-ACRE had offered around Rs 3,650 crore.

The lenders of Sintex Industries had voted in favour of the joint bid of RIL & ACRE, following which the resolution professional of the company in March last year moved the NCLT for its final approval.

As per the Insolvency & Bankruptcy Code, RP has to submit the resolution plan as approved by the CoC to NCLT under Section 30(6) of IBC, which gives its final approval.

Sintex Industries had also received bids from Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures along with Shrikant Himatsingka and Dinesh Kumar Himatsingka.

Insolvency proceedings against Sintex Industries were initiated in April last year. Claims of around Rs 7,500 crore have been admitted against the company.