A resolution plan submitted jointly by Reliance Industries Ltd (RIL) and Assets Care & Reconstruction Enterprise Ltd (ACRE) was recently approved by all members of the committee of creditors (CoC) to ailing textile firm Sintex Industries Ltd (SIL). The plan is subject to approval of the National Company Law Tribunal (NCLT), SIL informed the Bombay Stock Exchange (BSE).

The lenders to the company include Punjab National Bank, Bank of India, Bank of Baroda, Export Import Bank of India, HDFC Bank and Axis Bank. The lenders’ exposure to SIL is about ₹7,718.72 crore, according to a company filing with BSE.

Existing share capital of the company will be reduced to zero under the plan and it will be delisted from the stock exchanges, i.e., BSE and the National Stock Exchange.

A resolution plan submitted jointly by Reliance Industries Ltd and Assets Care & Reconstruction Enterprise Ltd was recently approved by all members of the committee of creditors to ailing textile firm Sintex Industries Ltd (SIL). The plan is subject to approval of the National Company Law Tribunal (NCLT), SIL informed the Bombay Stock Exchange.

Gujarat-based SIL said all four compliant resolution plans submitted by four resolution applicants were put for e-voting for approval by the CoC members in accordance with the Insolvency and Bankruptcy Code, 2016 (Code) and regulations. The e-voting concluded on March 19.

SIL has been undergoing substantial financial stress and severe liquidity constraints since the last fiscal. Coupled with changed industrial dynamics, it has been facing time and cost overrun in completion of projects, reduction in subsidies and incentive benefits and COVID-induced disruptions.

Fibre2Fashion News Desk (DS)