RIL-Sintex
Reliance consortium bids for bankrupt Indian fabric provider to Zara, Armani
Mumbai/IBNS: Reliance Industries Ltd (RIL) in partnership with Asset Care & Reconstruction Enterprise Ltd (ACRE) has submitted expressions of interest (EoI) for the bankrupt textile company Sintex Industries Ltd, as it looks to diversify into fashion.
Aditya Birla Asset Reconstruction Company, Welspun Group’s Easy Textile Ltd, Edelweiss Alternative Assets Advisors Ltd, and Himansinka Ventures have also submitted EoIs. In total, the resolution professional has received 16 EoIs for the textile maker.
Earlier this financial year, Mukesh Ambani's companies have bought the intellectual property rights to use the Lee Cooper brand, a clothing to footwear company, in India while also buying stakes in other high end fashion brands.
Sintex, a 1931 established textile firm, piqued RIL's interest as the company is a fabric provider to world renowned fashion brands including Zara, Banana Republic, and Armani.
Besides bidding for Alok Industries in a joint move with JM Financial ARC, Sintex is the only other bankrupt company undergoing insolvency to have received a bid from Mukesh Ambani’s RIL.
Insolvency Procedure
In April, the Gujarat-based textile firm’s insolvency procedure had started under the National Company Law Tribunal’s (NCLTs) Ahmedabad bench at the behest of Invesco Asset Management (India). The procedures began due to a Rs 15.4 crore default in payment of principal and non-convertible bonds in Sept. 2019.
Pinakin Shah, a resolution professional, has admitted claims amounting to Rs 7,5334.6 cr from 27 financial creditors.
The other lenders include HDFC Bank, RBL, Axis Bank, Aditya Birla Finance, IndusInd Bank, State Bank of India and Life Insurance Corporation, Economic Times (ET) reported.
Currently, Punjab National Bank, Punjab & Sind Bank and Karnataka Bank have deemed the account of Sintex Industries a fraud, according to multiple stock exchange notices.
Earlier this year, the Welspun Group had offered Rs 1,950 cr as an upfront payment to settle all debts but was considered quite low an offer to accept by two big commercial banks, reported ET.
The debt trapped Sintex Industries had reported a net loss of Rs 181.92 cr in the quarter ended Sept. 2021.
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