A joint consortium of Mukesh Ambani-owned Reliance Industries (RIL) along with Ares SSG Capital-backed Assets Care & Reconstruction Enterprise Ltd has received approval from bankers as the successful bidder to acquire stressed textile-and-yarn-maker Sintex Industries Ltd. “…the resolution plan submitted by Reliance Industries Limited jointly with Assets Care & Reconstruction Enterprise Limited (ACRE) has been duly approved by the 100% CoC (committee of creditors) members…as the successful resolution plan subject to approval of Hon’ble NCLT Ahmedabad,” the debt-ridden firm informed in a stock exchange filing. 

As many as 17 entities, including Singapore’s Makara Capital and a few major asset reconstruction companies, have submitted their formal expressions of interest (EoIs) to acquire debt-laden SREI Group companies under the consolidated corporate insolvency resolution processes, persons familiar with the development told FE. Makara Capital and asset reconstruction companies including JM Financial Asset Reconstruction Company and Asset Reconstruction Company (India) Limited (Arcil) have already submitted EOIs. The number of EoIs are expected to increase as some documents are coming through courier services, the persons cited above said. Saturday was the last date for submitting EoIs. A mail sent to Rajneesh Sharma, the administrator for the two companies, went unanswered till the time of going to press.

The committee of creditors (CoC) of IL&FS Financial Services, has rejected the offer of UV Asset Reconstruction Company (UVARC) to buy the former's assets. UVARC had offered to pay ₹370 Crore for the ₹4,300-Crore loan book. The CoC has communicated to the IFIN management that it should try to recover loans on its own rather than selling them to an ARC. A spokesman for IL&FS confirmed the development. "The last day for the said COC approvals was February 15, 2022. IL&FS decided not to extend the voting timeline further," he said. "Until February 15, the required percentage of CoC approval was not achieved."

The accounts of the Corporate Debtor had been classified as NPA in 2017. The Tribunal took into account the decision of the Supreme Court in Gaurav Hargovindbhai Dave vs. Asset Reconstruction Company(India) Ltd. & Anr Asset and B.K. Educational Services Private Limited vs. Parag Gupta and Associates wherein it was held that the right to sue accrues to the Financial Creditor against the Corporate Debtor on the date on which the Corporate Debtor's account is classified as NPA. Since the present petition was well within the period of limitation when it was initially filed in 2018, after classification of the Corporate Debtor's account as NPA (within 3 years), it is not barred by limitation.

The resolution processes for Videocon Oil Ventures (VOVL) and Sterling Biotech will likely benefit from the introduction of cross-border insolvency norms under the Insolvency and Bankruptcy Code (IBC), according to bankers FE spoke to. In her Budget speech for 2022-23, finance minister Nirmala Sitharaman said that necessary amendments to the code will be made to enhance the efficacy of the resolution process and facilitate cross-border insolvency resolution. While lenders had earlier identified Vedanta Group’s Twin Star as the buyer for 13 entities of the Videocon Group, clubbed together under the corporate insolvency resolution process (CIRP), VOVL was segregated because it owns oil and gas assets in Brazil and Indonesia. The 13 entities of Videocon Industries are now undergoing a fresh process of invitation of bids on court orders.