Billionaire Mukesh Ambani to own brankrupt Sintex? Reliance-ACRE submits EoI
According to a lender, this is the first time RIL has formally submitted an expression of interest for a bankrupt company that is going through the CIRP. The only other time it submitted a bid was for Alok Industries, which it did in collaboration with JM
Reliance Industries NSE -0.05 percent Ltd, in collaboration with Assets Care & Reconstruction Enterprise Ltd (ACRE), Varde Capital-backed Aditya Birla Asset Reconstruction Company, a Welspun NSE 1.48 percent Group entity, and foreign fund CarVal Investors, have submitted expressions of interest (EoI) for bankrupt Sintex NSE 4.08 percent Indus.
Edelweiss Alternative Assets Advisors Ltd, Asset Reconstruction Company of India, Prudent ARC, Trident Ltd of Ludhiana, Bangalore-based Himaksinka Ventures, Lotus Hometextile of Punjab, Mumbai-based Indocount Industries, Nitin Spinners, and GHCL Ltd are among the other EoI applicants. In total, the resolution expert has received 16 Expressions of Interest for the textile company.
According to, Sintex Industries supplies fabric to worldwide fashion labels such as Armani, Hugo Boss, Diesel, and Burberry.
In April, admitted to NCLT.
According to a lender, this is the first time RIL has formally submitted an expression of interest for a bankrupt company that is going through the corporate insolvency and resolution procedure (CIRP). The only other time it submitted a bid was for Alok Industries, which it did in collaboration with JM Financial ARC. That company was later purchased by it.
The Ahmedabad bench of the National Company Law Tribunal admitted the Gujarat-based textile company into the insolvency process in April this year at the request of Invesco Asset Management (India) Pvt Ltd over a $15.4 crore default in payment of principal and interest on non-convertible bonds in September 2019. (RP) Pinakin Shah, a resolution professional, has admitted claims from 27 financial creditors totaling Rs 7,534.6 crore.
HDFC Bank, Axis Bank, RBL, Aditya Birla Finance, IndusInd Bank, Life Insurance Corporation, and State Bank of India are among its lenders. The account has been labelled a scam by at least three banks: Punjab National Bank, Punjab & Sind Bank, and Karnataka Bank,according to various stock exchange notices.
Welspun Group had offered 1,950 crore to cover all dues in an upfront cash payment earlier this calendar year, but the negotiations fell through because two significant commercial banks thought the offer was too low, according to one of the sources listed above.
Edelweiss Alternative Assets Advisors did not respond to a request for comment. Requests for response were not returned by Reliance Industries, ACRE, CarVal, Welspun, Trident, Arcil, Aditya Birla ARC, or the RP.
Sintex Plastics Technology Ltd, a water storage tank manufacturer founded by Amit Patel, was demerged from Sintex Industries in 2017.
