M&A

M&A

Shriniwas Spintex to acquire insolvent Morarjee Textiles for Rs.156-Cr

Economic Times   Morarjee Textiles  

Wardha, Maharashtra-based Shriniwas Spintex is to acquire Mumbai-based Morarjee Textiles after being selected as winning bidder for INR 156 crore. Morarjee Textiles has a pending debt of INR 892 crore. The resolution plan involves an upfront payment of 30%, with the remainder staggered over two years.Indian Bank is the biggest creditor with INR 218 crore exposure, accounting for around 39% of the voting share. Axis Bank is next, with a INR 201 crore debt, accounting for roughly 36% of the vote share. Tata Capital (7%), ICICI Bank, and Kotak Mahindra Bank (5% each) are the other secured creditors.