Lenders have entered the final stage of negotiation with Reliance Industries Limited (NSEI:RELIANCE) after declaring it the highest bidder for Sintex Industries Limited (BSE:502742) on March 02, 2022 evening, said two people aware of the development. At a committee of creditors' meeting held on February 28, 2022 evening, lenders asked Reliance Industries and Assets Care & Reconstruction Enterprise Ltd. (ACRE) team to submit an improved offer by March 02, 2022, the people said. In most cases, lenders negotiate with the highest bidder to maximise recoveries from buyers of the bankrupt companies, said one of the lenders of Sintex.

The Reliance-ACRE offer equates to a recovery of 36% for lenders, excluding the 15% equity stake. Reliance Industries did not respond to the request for comments. In the second round of bidding, the Reliance Industries- ACRE team has offered INR 34.05 billion, which includes INR 27 billion as upfront payment to lenders and a 15% equity stake upon conversion of INR 1.71 billion debt into equity, as reported by ET earlier.

The Reliance-ACRE team are among the four applicants that submitted a resolution plan for the Gujarat-based textile manufacturing company. The other three bidders were Himatsingka Ventures offering INR 32.97 billion, Welspun group entity offering INR 31.02 billion and GHCL INR 21.40 billion, as re- ported earlier.