The group proposes to write off the entire equity capital of Syntex and delist the stock from the stock exchanges. This means that equity investors holding Syntex stock will lose their capital at zero. Dinesh Kumar Himatsingka’s Himmatsingka offered the second highest bid of Rs 3,279 crore for Syntex, which weaves clothing for global fashion brands such as Armani, Burberry and Diesel.
BK Goenka’s Welspun made a bid of Rs 3,102 crore for the bankrupt company, while Sanjay Dalmiya’s GHCL made an offer of Rs 2,140 crore. In a regulatory filing, Syntex said: “All the four resolution plans were put up for e-voting for approval by the creditors and the resolution plan submitted by RIL jointly with ACRE has been approved by 100% of the creditors. ”
It further said that as per the RILACRE resolution plan, it is proposed that the existing share capital of the company will be reduced to zero and the company will be delisted from BSE and NSE. The resolution professional has accepted claims of Rs 7,719 crore from financial creditors, Rs 74 crore from operational creditors and Rs 11 crore from employees of Syntex.
The Gujarat-based company, which was incorporated as Bharat Vijay Mills in 1931, reported a loss of Rs 442 crore on revenue of Rs 2,077 crore in the first nine months of FY22. If RIL Syntex completes the deal, it will be the Mukesh Ambani-led company’s second asset purchase under the bankruptcy code. It had earlier bought Alok Industries in partnership with JM Financial Asset Reconstruction Company for Rs 5,050 crore.
Syntex was admitted in the bankruptcy process by NCLT-Ahmedabad on April 6, 2021 following a petition by Invesco Asset Management following a default in payment of principal and interest on non-convertible bonds by Syntex in September 2019. Syntex owes Rs 15 crore to Invesco. , ,