NCLT approves Propel Plastic Products-Plastauto bid for debt-ridden Sintex-BAPL

The National Company Law Tribunal (NCLT) bench of Ahmedabad has approved the bid by a consortium of Propel Plastic Products Pvt Ltd and Plastauto Pvt Ltd for debt-ridden Sintex-BAPL.

The Ahmedabad bench of NCLT has pronounced the order, approving the resolution plan of Sintex-BAPL Limited, Sintex Plastics Technology Ltd (SPTL) informed the bourses.

Sintex-BAPL, a leading maker of water storage tanks and plastic-based interiors, is a wholly-owned material subsidiary of SPTL.

«As per pronouncement of the order, the NCLT, Ahmedabad, has approved the Resolution Plan submitted by Consortium of Propel Plastic Products and Plastauto (erstwhile known as Tubular Pipes),» it said.

It has not shared the bid amount. However, according to reports, it is around 1,250 crore.

The company will furnish a copy of the order after it is published on the NCLT website, it added.

Earlier on 28 February, the Ahmedabad bench of NCLT had admitted the application filed by its financial creditor Asset Reconstruction Company (India) Ltd, claiming an outstanding of 350.28 crore of which 215.77 crore was principal amount and 134.50 crore towards interest.

The NCLT had appointed Kshitiz Chhawchharia as the Interim Resolution Professional for the company. Insolvency proceedings against SPTL were triggered as it was a corporate guarantor of loans given to Sintex BAPL Ltd (SBL). 

SBL is presently going through Corporate Insolvency Resolution Process (CIRP), and a bid of 1,251 crore is pending for approval. The NCLT said the claim of the financial creditor is not fully met in the Corporate Insolvency Resolution Process (CIRP) of SBL, hence it also directed to initiate insolvency against SPTL. 

(With inputs from PTI)

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