If current bidders do not improve their offers significantly, lenders of textile major Sintex Industries’ plan to hold a Swiss challenge auction to prevent the business from going bankrupt. The lenders plan to adopt several ways to encourage bidders to substantially increase their offers for purchase. They plan to take the auction route instead of voting for liquidation.
The Swiss challenge system involves publishing of the bid made upon it by an entityt and inviting third parties to either match the bid or submit a higher bid. Reliance Industries ACRE team earlier made a bid for Sintex industries, which led to resolution professional Pinakin Shah asking bidders to submit improved offers and resolution plans for the business.
Sintex currently has four bidders with Reliance Industries’ ACRE team having offered the most for the business with an offer of Rs 2,363 crore. Textile business Welspun’s Easygo Textile has offered Rs 2,300 crore and Himatsingka Ventures and GHCL have also placed slightly smaller bids.