Ares SSG’s ARC arm, Edelweiss, others bid for bankrupt Sintex Industries
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Ares SSG Capital-backed Assets Care & Reconstruction Enterprise Ltd (ACRE), Varde Capital-backed Aditya Birla Asset Reconstruction Company and Avenue Capital-backed Asset Reconstruction Company of India Ltd (Arcil) are among 16 expressions of interest (EOIs) applicants for Sintex Industries Ltd under the bankruptcy process, according to an Economic Times report.

The other EoI applicants include Edelweiss Alternative Assets Advisors Ltd, Asset Reconstruction Company of India, Prudent ARC, Ludhiana-based Trident Ltd, Bangalore-based Himaksinka Ventures, Punjab-based Lotus Hometextile, Mumbai-based Indocount Industries, Nitin Spinners, and GHCL Ltd. In all, the resolution professional has received 16 EoIs for the textile company, the report said. 

Edelweiss refused to comment, while Prudent ARC confirmed to VCCircle that the EOI was made under the IBC process. Varde Partners declined to comment. Queries sent to the other financial investors and the interim resolution professional did not elicit a response. 

The bid by ACRE, which is majority owned by Hong Kong-based distressed and alternative investment manager Ares SSG Capital, will be in a tie-up with Mukesh Ambani-owned Reliance Industries Ltd. This would be the second formal EOI made by the conglomerate after bidding for Alok Industries under the Insolvency and Bankruptcy Code (IBC). 

Aditya Birla ARC is backed by Welspun Group entity and foreign fund CarVal Investors. 

In April this year, an Ahmedabad bench of the insolvency tribunal had admitted the fraud-hit textile and yarn manufacturer 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 net worth was at Rs 500 crore or more singly / jointly as per audited balance sheet as 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 against a subsidiary of Sintex Plastics Technology to recover a 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 it has been working with lenders to bring a resolution plan in place for its business activities. 

Founded in 1931 at Kalol in Gujarat, Sintex Industries (formerly known as The Bharat Vijay Mills Ltd) is a diversified company. Its textile segment offers fabric and yarn.  It provides fabric to global fashion brands such as Armani, Hugo Boss, Diesel and Burberry, according to the company's website. 

Chairman-cum-promoter Dinesh Patel and his family owned 4.54% of the firm as on December-end 2020.

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