A KKR-led group of creditors is considering settling up with the Sintex-BAPL promoter out of court, people told The Economic Times.
Amit Patel has made an offer worth Rs 1,100 crore as he wants KKR to withdraw the insolvency case filed in August 2020, they said.
The group of creditors includes State Bank of India (SBI), other banks, and mutual funds.
Patel’s offer has the backing of Arpwood Capital, a firm founded by former Carlyle executive Rajeev Gupta.
Sintex-BAPL, a subsidiary of Sintex Plastic Technology, is into automotive products manufacturing and owes KKR a principal sum of Rs 1,190 crore as well as interest.
The firm had raised Rs 1,250 crore ($185.7 million) debt from KKR in May 2018 to refinance some loans and finance growth in a vertical.
Also, the alternatives arm of Kotak Mahindra Bank has announced the acquisition of Prius Commercial Projects for Rs 450 crore in an all-cash deal.
This is the unit’s first purchase under the bankruptcy process.
Late last month, VCCircle had reported that the development is about to take place.
Formerly known as GYS Real Estates, Prius was founded in 2006. It is engaged in leasing out commercial space and owns a building named Prius Platinum at a premium location in Saket in the national capital.
Separately, with the suspension of the bankruptcy law coming to an end on 31 March, Business Standard said the government is preparing relief for small businesses as part of which they will be able to opt for pre-package deals, among other things.
Under a pre-package deal, promoters and creditors can reach out-of-court settlements.
Further, the small company’s board will not be superseded if the firm enters bankruptcy.