NCLT approves joint bid of Reliance Industries, ACRE to acquire Syntex Industries

“NCLT has passed an order orally on Friday” approving the resolution plan submitted jointly by Reliance Industries Ltd and Assets Care and Reconstruction Enterprise Ltd, Sintex Industries said in a regulatory filing.

Read also: Reliance Industries-ACRE wins bid to acquire Syntex Industries, proposes to delist shares

The scheme involves reduction of share capital and delisting of zero value equity shares. Syntex Industries said it will provide further updated disclosures when the written order becomes available.

As per reports, the lenders to Syntex had voted in favor of the joint bid of Reliance Industries and ACRE. Following the lenders’ approval of the joint bid, the company’s resolution professional moved the NCLT for final approval.

As per the Insolvency and Bankruptcy Code, the resolution professional has to submit the resolution plan approved by the committee of creditors under section 30(6) of the IBC to the National Company Law Tribunal (NCLT), which accords final approval.

Other bidders for Sintex Industries include Welspun Group firm EasyGo Textiles, GHCL and Himmatsingka Ventures along with Shrikant Himmatsingka and Dinesh Kumar Himmatsingka.

Read also: Welspun looking to acquire bankrupt Syntex Group

“At present, the corporate debtor (Syntex Industries) is operating at less than its optimum capacity. With RIL’s relevant experience in the textile value chain and ACRE’s domain knowledge in resolution of stressed assets, they will bring efficiencies in strengthening a process control and management of corporate debtors through identification of gaps.

The insolvency proceedings against Syntex began in April last year and claims against the company amounting to around Rs 7,500 crore have been admitted so far.