Intimation of Order passed by the NCLT in relation to acquisition of Sintex Plastic Technology Limited as going concern basis in Liquidation process under IBC, 2016.
Awaiting price reaction for this filing.
The National Company Law Tribunal (NCLT) has passed an order related to the acquisition of Sintex Plastics Technology Limited on a going concern basis within its liquidation process under the Insolvency and Bankruptcy Code (IBC), 2016. This means a buyer has been approved to take over the company as a running business rather than its assets being sold off separately in pieces. The company had been undergoing insolvency proceedings under IBC, and the liquidation process is now culminating in this acquisition. Acquiring a company as a going concern generally helps preserve business operations, employees, and overall value compared to piecemeal asset sales.
For existing shareholders, this announcement typically signals near-total loss of equity value, as shares are almost always extinguished in IBC liquidation processes. The stock is likely to see further negative pressure, while operations continue under new ownership. Creditors may recover part of their dues depending on the terms of the acquisition.