RIL, ACRE to submit Sintex Industries resolution plan to NCLT

Reliance Industries Limited (RIL) and Assets Care & Reconstruction Enterprise Limited (ACRE) accepted the letter of intent issued by the Interim Resolution Professional – Sintex Industries Limited , the company said in a BSE filing on Tuesday. The resolution plan for Sintex Industries Limited by RIL and ACRE will now be submitted to the National Company Law Tribunal (NCLT) for approval. 

This comes after trading in shares of Sintex was suspended on NSE and BSE, with effect from Tuesday, following the approval of the insolvency resolution plan by the members of the committee of creditors (CoC). 

The company’s stock closed at Rs 7.82 on Monday, down 4.98 per cent against the previous close of Rs 8.23 on BSE. It opened at Rs 7.82 and was stuck at the same level through the session. Sintex Industries’ market cap stood at Rs 468.59 crore on BSE.

The successful resolution plan, which is subject to approval of the NCLT, proposes to reduce the existing share capital of the company to zero, and to delist the company from the stock exchanges. 

The resolution professional issued the letter of intent to RIL and ACRE on March 20, informing that the committee of creditors approved the resolution plan submitted by the parties by a vote of 98.88 per cent. The resolution professional declared RIL and ACRE as the successful resolution applicants, the filing added. 

Sintex Industries also received bids from Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures along with Shrikant Himatsingka and Dinesh Kumar Himatsingka to be considered by the CoC. 

The insolvency proceeding against Sintex Industries was initiated in April last year. Claims of about Rs 7,500 crore were admitted against the company.

Also read: Trading in Sintex Industries stock suspended on BSE, NSE