Lenders to textile firm Sintex Industries reject $1 billion revamp plan

Banks to Sintex Industries, led by Punjab National Bank, were expecting at least 50% recovery on loans.

Lenders to Sintex Industries Ltd. rejected a debt restructuring plan by the company and intend to push it into bankruptcy, people familiar with the matter said.

According to the resolution proposal, the textile company will be able to service only 30% of its Rs 63 billion ($888 million) of bank loans, the people said, asking not to be named, as the information isn’t public. The plan also included infusion of about 2 billion rupees into Sintex by two other yarn producers, the people said.

Indian banks, saddled with the world’s worst bad-loan ratio, have been struggling to recover money from delinquent borrowers