The bid by Reliance industries’ (RIL) consortium to acquire Gujarat-based Sintex Industries, which is undergoing bankruptcy proceedings, received the committee of creditors’ (CoC) approval on Saturday.

The CoC approved the resolution plan submitted by RIL jointly with Assets Care & Reconstruction Enterprise (ACRE) with 100% of their votes.
The e-voting to approve the plan concluded on Saturday, Sintex Industries said in a regulatory update on Sunday.

Sintex Industries, a company promoted by Amit Patel and family, had received four plans from resolution applicants that were put for e-voting.

The Reliance industries consortium’s plan has proposed that the existing share capital of Sintex Industries would be reduced to zero and the firm would be delisted from the stock exchanges.

The process now needs the National Company Law Tribunal’s Ahmedabad bench’s approval, it added.

The lenders to Sintex Industries had got a total of four proposals — RIL-ACRE, Himatsingka Ventures, Welspun and GHCL — while the RIL-ACRE consortium had emerged as the highest bigger with a Rs 3651-crore proposal. Himatsingka Ventures offered Rs 3,297 crore, Welspun offered Rs 3,102 crore and the offer of GHCL was Rs 2,140 crore.

ACRE is an asset reconstruction company backed by Ares SSG Capita.

A company resolution professional had admitted a total of 27 claims from financial creditors worth Rs 7,534.6 crore.

Sintex was founded in the 1930s as a textile mill, Bharat Vijay Mills, in Kalol, Gujarat, and was later rebranded as Sintex Industries, a cotton yarn and fabric maker.

The company’s sales were hit by rising competition and then by Covid-19, following which the company filed for bankruptcy.

Later in April 2021, the NCLT’s Ahmedabad bench admitted an insolvency process plea filed by Invesco Asset Management (India) after Sintex Industries defaulted on Rs 15-crore repayment on non-convertible debentures.