Mumbai: Reliance Industries-Assets Care & Reconstruction Company (ACRE) submitted an improved offer of ₹3,651 crore for bankrupt Sintex Industries on Wednesday, according to two people aware about the development. The duo had earlier offered ₹3,405 crore for the Gujarat-based textile company that is undergoing insolvency proceedings, as reported by ET.
Among four applicants that bid for Sintex, lenders declared Reliance-ACRE team as the highest bidder on Monday and asked the duo to give an improved offer by Wednesday.
Reliance Industries and the resolution professional did not respond to ET’s request for comment.
The revised plan by Reliance-Acre is said to be above liquidation value, said one of the persons cited above. Lenders were seeking improved resolution plans from the bidders since the previous offers from were below liquidation value. Lenders are hesitant to put to vote all four plans since they were below liquidation value.
The Supreme Court has opined that a resolution plan can be below liquidation value in a matter relating to Maharashtra Seamless, but lenders are hesitant to accept one, especially when either the corporate debtor or the resolution applicant is “high-profile” given the negative publicity that may be associated with such an action, said an insolvency expert.
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