Welspun group company Welspun Corp has placed a bid to acquire Sintex Prefab and Infra Ltd, as part of the Sintex group firm’s ongoing bankruptcy resolution process in the National Company Law Tribunal (NCLT), said two people aware of the development.
Sintex Prefab, a subsidiary of Sintex Plastics, was taken to the NCLT under the insolvency and bankruptcy (IBC) code last year by Bank of Baroda. The company makes prefabricated plastic structures for industrial and housing projects.
“Welspun is keen on acquiring this Sintex business. They have been evaluating various Sintex businesses that are up for sale because of the bankruptcy process and they have placed a bid for Sintex Prefab recently. The committee of creditors (CoC) is voting on the Welspun bid. The voting will be completed by next week," said the first person mentioned above on the condition of anonymity as he is not authorized to speak with the media.
Sintex Prefab has outstanding claims of more than ?600 crore from financial and other creditors, said the second person mentioned above. “The Welspun bid is close to 10% of the outstanding claims," he said.
Welspun Corp on Tuesday informed the stock exchanges that it has set up an entity under the name Big Shot Infra Facilities Pvt. Ltd, which it intends to use as a special purpose vehicle for organic or inorganic growth of its businesses. The Sintex Prefab business will be housed in this special purpose vehicle, if Welspun’s bid is approved by the CoC, said the second person mentioned above.
Sintex Prefab is not the only business in the Sintex group that Welspun has interest in earlier this month, Welspun Corp acquired ?1,128 crore of debt of Sintex BAPL (SBAPL), known for its plastic water tanks, for ?386.9 crore, the company said in a stock exchange filing. Sintex BAPL is also undergoing bankruptcy resolution.
“Welspun Corp. Ltd is desirous of working harmoniously with other lenders of Sintex BAPL Ltd to resolve the insolvency situation of SBAPL at the earliest in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016," the company said in its filing.
