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


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

NCLT’s Ahmedabad bank has issued the order and approved Sintex-BAPL Limited’s resolution plan, Sintex Plastics Technology Ltd (SPTL) informed the exchanges.

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

“According to the order ruling, the NCLT, Ahmedabad has approved the resolution plan submitted by the Consortium of Propel Plastic Products and Plastauto (formerly known as Tubular Pipes),” it said.

It did not share the bid amount. However, according to reports, it is around 1,250 crores.

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

Earlier on Feb 28, NCLT’s Ahmedabad bank had admitted the application filed by its financial creditor Asset Reconstruction Company (India) Ltd claiming an outstanding debt of 350.28 crore of which 215.77 crore was principal and 134.50 crore in interest.

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

SBL is currently going through the Corporate Insolvency Resolution Process (CIRP) and a bid from 1,251 crore is pending approval. The NCLT said the financial creditor’s claim has not been fully satisfied in SBL’s Corporate Insolvency Resolution Process (CIRP), which is why it also ordered insolvency against SPTL to be initiated.

(with input from PTI)

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.