The National Company Law Tribunal, Ahmedabad Bench, has approved Welspun Corp’s resolution plan for Sintex-BAPL, which has been undergoing insolvency proceedings for over two years.
Welspun is acquiring Sintex-BAPL through a consortium of its subsidiary, Propel Plastic Products, and a related party Plastauto Pvt Ltd. Its resolution plan was approved by the committee of creditors in February.
B2C segment
As of January, total claims worth ₹3,266 crore that were due to creditors of Sinxtex were admitted, the bulk of them being financial creditors. Welspun Corp has already acquired Sintex-BAPL’s non-convertible debentures with an outstanding of ₹1,231 crore for a purchase price of ₹421 crore through its subsidiary Mahatva Plastic Products and Building Materials.
Welspun Corp which makes pipes sees the acquisition of KKR-backed Sintex-BAPL as its entry into the business-to-consumer segment where Sintex has a strong brand recall. Before the company became bankrupt it had over 10 per cent of the market share in its segment of plastic products.
In February, the company management had said they were focused on turning it around, with a clear strategy as to how to leverage the brand. Sintex has more than 800 distributors and 13,000 retailer-base which Welspun sees as a strategic addition to its existing businesses.