In terms of the resolution plan submitted by Propel Plastic Products Private Limited (“Propel”) a wholly owned subsidiary of Welspun Corp Limited (“WCL”) and Plastauto Private Limited (“Plastauto”), together referred to as the Consortium, for Sintex-BAPL Limited (SBAPL) and as approved by the Hon’ble National Company Law Tribunal, Ahmedabad by its order dated March 17, 2023 (“Approved Resolution Plan”), the following transactions were effected to give effect to the Approved Resolution Plan:
- Propel has discharged the consideration to the creditors of SBAPL for an amount aggregating Rs. 1,251 Crore in the form of Upfront Cash in terms of the Approved Resolution Plan;
- Pursuant to the implementation of the Approved Resolution Plan, Propel has merged with SBAPL with effect from March 29, 2023;
- Consequent to the merger, SBAPL has allotted equity shares to the shareholders of Propel viz., WCL in accordance with the Scheme of Arrangement provided under the Approved Resolution Plan. Resultantly, SBAPL has become the wholly owned subsidiary of WCL with effect from March 29, 2023; and
- As required under the Approved Resolution Plan, upon re-constitution of SBAPL’s Board of Directors, SBAPL has executed a Business Transfer Agreement (“BTA”) and hived-off its Auto Business to Plastauto (i.e. other Consortium Member and a Related Party of WCL) for an overall lump-sum consideration of Rs. 110 Crore and as per the terms of the Approved Resolution Plan. The Effective Date for BTA is March 29, 2023.
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