Welspun Set to Acquire Distressed Plastic Products Maker Sintex BAPL
Welspun Corp is set to acquire over 70% of the debts of KKR-backed Sintex BAPL, paving the way for it to take control of the distressed plastic products maker which is in the midst of insolvency proceedings. Avenue Capital-backed Asset Reconstruction Company of India (Arcil) in partnership with Welspun, has been acquiring Sintex BAPL loans from lenders since the beginning of this fiscal year. Separately, Welspun Corp subsidiary Mahatva Plastic Products & Building Materials has purchased bonds of Sintex BAPL from the secondary market. SBI will hold an e-auction on December 6 for the sale of Sintex BAPL debt, according to a notice posted by the bank on its website. Separately, Arcil is in talks with HDFC Bank to acquire their Rs 73 crore loans. Following the purchase of loans from SBI and HDFC Bank, the duo - Arcil and Welspun combine - will gain control of about 73% of the debt. Welspun's subsidiary Mahatva Plastic has acquired Rs 1,223 crore bonds of Sintex BAPL from the secondary market, according to a stock exchange disclosure by the company on November 3. The bonds were acquired at Rs 418 crore, the same notice said.
Tags : Welspun Corp debts BAPL Avenue Capital-backed Asset Reconstruction Company of India