Reliance partners with Assets Care to bid for Sintex Industries
Reliance Industries Ltd. (RIL), in collaboration with Assets Care & Reconstruction Enterprise Ltd, has reportedly submitted a bid for Sintex Industries Ltd, the bankrupt yarn and textile manufacturer, under a court designated CIRP (corporate insolvency resolution process).
The joint resolution plan submitted by Assets Care & Reconstruction Enterprise Ltd and Reliance Industries is among the four bids filed for the company. Other bidders include GHCL Limited, Himatsingka Ventures Private Limited, and Easygo Textiles Private Limited (Welspun Group).
The Halol-based company, in a regulatory filing to the stock exchange, stated that the IRP (Interim Resolution Professional) Pinakin Shah will evaluate the resolution plans, which will be presented before the CoC (Committee of Creditors) for further consideration.
In April this year, the textile company was admitted into the process of insolvency by NCLT (National Company Law Tribunal)’s Ahmedabad Bench on a petition filed by the Invesco Asset Management (India) Pvt Ltd, as it looked to recover USD 2.03 million (?15.4 crores) as interest and principal of non-convertible bonds.
Meanwhile, Pinakin Shah has admitted nearly USD 995.03 million (?7,534.6 crores) in claims from 27 financial providers including Axis Bank, Aditya Birla Finance, RBL, HDFC Bank, IndusInd Bank, State Bank of India, Life Insurance Corporation, Punjab & Sind Bank, Karnataka Bank, and Punjab National Bank.
This move by the Mukesh Ambani-led RIL is only the second time the organization has showcased an interest in an insolvency company.
Apart from acquiring flagship Bollywood brands and assets in recent years, Reliance Industries has also joined forces with several luxury international brands including Burberry Group Plc, Hugo Boss AG, and Tiffany & Co.
For the record, Sintex Industries was founded in 1931 and has been a crucial contributor to the yarns and textiles industry for more than 8 decades. It is the fabric provider to global fashion brands like Armani, Diesel, Hugo Boss, and Burberry.
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