Sintex forzen at 5% LC

The Sintex group is in dire straits. In Sintex Industries, for some time now, the banks were looking out for buyers as none of them wanted to infuse more money into the debt ridden company. News was that Balkrishan Goenka-controlled Welspun India, Rajinder Guptaowned Trident Group and Paul Oswal-controlled Vardhman Group had been approached by the bankers to buy the debt-laden company. The bids they received were 50% below the loan value.

The Sintex Group as a whole owes banks a total of Rs 10,000 crore, with PNB being the main lender.

 Today, Bloomberg has said, quoting ‘sources’ that the bankers have rejected a debt restructuring plan by the company. This means now the only option left is to file for bankruptcy and go to the NCLT.

Other lenders to Sintex include Bank of India, Bank of Baroda and Union Bank of India.

Sintex Industries is frozen at the 5% LC at Rs.1.09 the moment it opened for trading and Sintex Plastics too was frozen at its 5% LC at Rs.1.36.