Eight companies including Reliance Industries, and MCPI, Kolkata have expressed interest to take over debt-laden textile manufacturer Sumeet Industries. UP-based Bhola Ram Papers & Power, Mumbai-based Bhilosa Industries and Bhumi Tex Industries, and Gujarat-based Eagle Group and Geelon Industries are other interested bidders.
These companies officially submitted their interest along with supporting documents earlier this month and will be now scrutinised by the resolution professional before calling for formal bids for the company.
The Surat-based Sumeet Industries, which is into yarn and polyester production, owes lenders and operational creditors led by the Bank of Baroda a total of Rs. 667 crore. It has admitted to the bankruptcy court in December last year after a failed attempt to restructure its loans.
Other lenders to the company are Central Bank of India, Canara Bank, Union Bank of India and Germany-based Oldenburgische Landesbank AG.
As per media reports, Sumeet Industries has been in trouble for the last couple of years and had also tried to restructure its loans. Even the mandatory RP4 credit rating was received based on which a restructuring plan was proposed. However, banks could not agree on the details of the plan so this company was taken to the bankruptcy court
The company posted a loss of Rs. 25 crore in the quarter ended December 2022 despite a rise in revenues as expenses remained elevated.
