Lenders to bankrupt textiles business Sintex have asked applicants Reliance Industries and Assets Care & Reconstruction Enterprise (ACRE) to submit an improved offer by March 2. The Reliance-ACRE team is one of four applicants which submitted draft resolution plans for Sintex Industries. The current offer from RIL-ACRE equates to a recovery rate of 36 per cent for lenders. However, it excludes the 15 per cent equity stake of the Sintex. The lenders will negotiate to try and increase their recovery rate in the deal.

The second bid offered by the RIL-ACRE team for Sintex was more than 10 per cent equity stake offered by the team in its previous resolution plan. The business offered Rs 3,405 crore including Rs 2,700 crore as an upfront payment to lenders and a 15 per cent equity stake to be paid upon the conversion of Rs 171 crore of debt into equity. Lenders hope to receive an offer exceeding the liquidation value of Sintex.