Welspun to take over 67% of Sintex BAPL's debt

Welspun Corp has taken over more than half of the debt of KKR-backed Sintex BAPL, paving the way for it to acquire the company that has been undergoing insolvency proceedings for over a year. Welspun is offering INR 1,127 crore to acquire Sintex BAPL, a manufacturer of plastic components for the automotive industry. This would equate to a recovery of about 36% for lenders on their outstanding principal of INR 3,168 crore. Welspun is seeking to acquire at least 67% of the total debt, which will give it controlling rights at Sintex BAPL's committee of creditors. So far, it has acquired 54%, or INR 1,737 crore, of the principal debt for INR 546 crore, by purchasing loans from three banks and bonds in the secondary market.