According to those familiar with the situation, Welspun Corp. Limited is on track to purchase over 70% of Sintex-BAPL Limited’s debts, opening the door for it to seize control of the struggling manufacturer of plastic products that is currently subject to insolvency proceedings. Asset Reconstruction Company (India) Limited (Arcil) in partnership with Welspun, has been acquiring Sintex BAPL loans from lenders since the beginning of this fiscal year.
Mahatva Plastic Products & Building Materials, a division of Welspun Corp., has also bought Sintex BAPL bonds in the secondary market. According to one of the aforementioned sources, a Swiss challenge auction was started last week as a result of an offer made by Arcil for the State Bank of India’s Sintex BAPL debt.
For the 1,980 million rupees in loans from Sintex BAPL, the asset reconstruction company has made an offer to SBI of 1,350 million rupees, or 68% of the bank’s loss. SBI announced on its website that it would organise an electronic auction for the sale of Sintex BAPL debt on December 6, 2022.