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Ares SSG arm-Reliance and Welspun among 4 bidders to acquire stressed Sintex Industries
Photo Credit: 123RF.com

Billionaire Mukesh Ambani-owned Reliance Industries (RIL) has partnered with Ares SSG Capital-backed Assets Care & Reconstruction Enterprise Ltd (ACRE) to be among the four bidders for debt-laden Sintex Industries.

RIL, along with ACRE, Easygo Textiles Pvt Ltd (Welspun Group), GHCL Ltd, Himatsingka Ventures Pvt Ltd, and Shrikant Himatsingka and Dinesh Kumar Himatsingka are the prospective resolution applicants that submitted their resolution plans to acquire the stressed textile-and-yarn-maker, Sintex Industries informed in a stock exchange filing on Sunday.

“Resolution plans received shall be evaluated by the Interim Resolution Professional (IRP), and then shall be placed before the Committee of Creditors for further consideration,” the company said.

IRP Pinakin Shah has admitted Rs 7,534.6 crore in claims from 27 financial creditors including HDFC Bank, Axis Bank, RBL, Aditya Birla Finance, IndusInd Bank, Life Insurance Corporation, State Bank of India, Punjab National Bank, Punjab & Sind Bank and Karnataka Bank.

In October, Shah received 16 expressions of interest (EOIs) from applicants including Varde Capital-backed Aditya Birla Asset Reconstruction Company (ARC) in partnership with Easygo Textiles, and Avenue Capital-backed Asset Reconstruction Company of India Ltd (ARCIL) under the bankruptcy process.

Edelweiss Alternative Assets Advisors Ltd, Asset Reconstruction Company of India, Prudent ARC, Ludhiana-based Trident Ltd, Bengaluru -based Himaksinka Ventures, Punjab-based Lotus Hometextile, Mumbai-based Indocount Industries and Nitin Spinners were also in the race.

In April this year, an Ahmedabad bench of the insolvency tribunal had admitted Sintex Industries on a plea by Invesco Asset Management (India) Pvt Ltd over a Rs 15.4 crore default in September 2019.  

The firm’s total assets under management (AUM) / outstanding loan portfolio stood at Rs 2,000 crore as on March-end 2021. The consolidated group’s net worth was at Rs 500 crore or more singly/jointly as per the audited balance sheet on 31.03.2021, said a public notice by IRP Pinakin Shah to invite bidders. 

Sintex Industries' subsidiaries include BVM Overseas, Sintex-BAPL and publicly listed Sintex Plastics Technology. 

In August last year, the non-bank lending arm of global private equity firm KKR approached the tribunal to stand against a subsidiary of Sintex Plastics Technology to recover debt it had sanctioned two years ago.   

A few months ago, it was reported that a KKR-led group of creditors is considering settling up with the Sintex-BAPL promoter out of court. 

Parent Sintex Industries last year had said that it has been working with lenders to bring a resolution plan in place for its business activities.

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