SinTex Industries defaults Rs 90 cr bonds

MUMBAI: Ahmedabad based SinTex Industries, manufacturer of textile and yarns Wednesday defaulted about Rs 90 crore repayments on bonds, the company said in a release filed with the stock exchange. In a filing with the BSE, the company claims the present liquidity crisis is temporary and will not affect its going concern.

Investors in those debt papers included banks, one mutual fund and other institutions. Axis Bank helped the company sell bonds five years ago in June, 2014. Those securities are secured and offered 10.70 percent interest and mature in June 2021.

“Investors are likely to have exercised put option for which the company did not have money to repay,” said a senior executive involved in the process of bond sales. The bonds had a put option at the end of five years. The company has not yet communicated with the investors directly. Amongst mutual funds one fund house Invesco Mutual Fund has a 5.67% holdiRead More – Source

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