On Friday, the National Company Law Tribunal (NCLT) approved the bid for debt-laden Sintex-BAPL by a consortium comprising Propel Plastic Products Pvt Ltd and Plastauto Pvt Ltd.
The Ahmedabad bench of NCLT announced the order approving the resolution plan of Sintex-BAPL Limited, Sintex Plastics Technology Ltd (SPTL) notified the exchange.
Sintex-BAPL, a leading manufacturer of water storage tanks and plastic interiors, is a wholly-owned materials subsidiary of SPTL.
“According to the order states, the Ahmedabad-based NCLT has approved the settlement plan submitted by the Federation of Propel Plastic Products and Plastauto (formerly known as Tubular Pipelines),” it said.
It did not share the bid amount. However, the figure was reportedly around Rs 1,250 crore. The company will provide a copy of the order upon posting it on the NCLT website.
NCLT’s Ahmedabad bench has admitted an application by its financial creditor, Asset Reconstruction Company (India) Ltd, for repayment of Rs 350.28 crore.
Insolvency proceedings were triggered against SPTL as a Sintex BAPL Ltd (SBL) loan corporate guarantor. NCLT said the claims of financial creditors had not been adequately satisfied in SBL’s corporate insolvency resolution process (CIRP). Accordingly, it also directs the initiation of insolvency proceedings against SPTL.