lenders Syntex Industries They have agreed in principle to sell their debt to a government-promoted asset reconstruction company because of the inordinate delay in approving the resolution plan by the bankruptcy court, two people familiar with the matter told ET.

Nearly 97% lenders voted for ₹3,651-crore plan Reliance Industries in partnership with Assets Care and Reconstruction Enterprise (ACRE) in March this year. The resolution professional filed the plan of the winning bidder in Ahmedabad National Company Law Tribunal ,NCLT) for approval on 23 March.

In a meeting in mid-November, the lenders discussed the possibility of selling Syntex Industries to National Asset Reconstruction Company (NARC).NARCL,

“Since there is no certainty on the time taken by the tribunal to approve the scheme, the lead bank has offered to sell the loan to NARCL,” the people said. According to the tribunal’s website, Ahmedabad will hear the matter on the NCLT resolution plan on December 7. Several issues are being heard at the tribunal, potentially delaying resolution. axis Bank The winning resolution has filed a petition with the Tribunal opposing the distribution of proceeds from the applicant. Axis Bank was the only bank that voted against the resolution plan.

Separately, the litigation to transfer the title deed of 202 acres of land purchased by the company is yet to be resolved. Besides, there are matters relating to preferential transactions, a disallowed claim of ₹531 crore from sister concern Syntex Prefab, which is in the midst of corporate bankruptcy and refund of power and GST subsidies.

Till these issues are resolved, NCLT approval will be delayed; The people quoted above said. Lenders expected NARCL to make an offer within a fortnight and complete the debt sale in the fourth quarter. NARCL’s offer will be a combination of cash and security receipts that will be redeemed on recovery of the loan. The shortfall in recovery promised by NARCL is guaranteed by the government.

RIL-acre The team offered ₹3,651 crore as part of a plan that includes payments to verified lenders, trade creditors and employees. Both the offers included 15% equity for verified lenders, which made the offer attractive. ACRE, a property reconstruction company, is backed by Ares SSG Capital, an alternative investment fund.

NARCL recently acquired ₹9,234 crore Jaypee Infratech ₹3,570 crore loan from lenders. lender of Jaypee Infratech Approved the plan in July 2021, but it is pending approval from NCLT.