The National Company Law Tribunal (NCLT) had approved the debt resolution plan of Sintex Industries on Friday. This was further submitted jointly by the Reliance Industries and Assets Care and Reconstruction Enterprise (ACRE).
In an order given verbally, the plea from Axis Bank was rejected with an objection of distribution of proceeds from the sale of the bankrupt textile company. The tribunal is yet to upload the order on the website. Axis Bank is demanding an unsecured credit which will proceed under the voted against the RIL-Acre, according to the sources. In March 2022, 97% of the leaders voted for the RIL- ACRE team. The resolution for the same had filed an approval with Ahmedabad NCLT during the same month
The offer includes 15% equity for the verified leaders, creditors and employees. ACRE has an asset reconstruction which is baked by the alternative investment fund Ares SSG Capital. The plan also involves a fund capital for the equity shares with the zero value,as per the sources of the RP stock exchange.
The stakeholders have petitioned the NCLT to receive money against the shares, the tribunal rejected the petition. In November 2022, the government promoted the ARC, National Asset Re-construction Company of India. It also offered to acquire loans of Sintex Industries from the lenders as it was not progressing amidst differences over the prices of loans. The NTCL took some time to approve the RIL- ACRE due to the litigation which relates to the preferential transactions and a rejected claim worth Rs.531 crore from its sister company, Sintex Prefab and also a refund of power and a GST subsidy.
There is also a dispute over a land of 202-acres which was purchased by Sintex before admitting its insolvency. The state authority did not transfer it to the company’s name.
