Resolution of bankrupt textile company Sintex Industries is likely to be delayed as Axis Bank has objected to the proposed distribution of proceeds from its sale to Reliance Industries and Assets Care and Reconstruction Company (ACRE), two people in the know said. The RIL-ACRE team had emerged as the top bidder, offering ₹3,651 crore for Sintex Industries.

Axis Bank is the sole lender to vote against the resolution plan submitted jointly by the two, the sources said. Axis Bank has ₹159 crore verified claims, according to the disclosures made on the company website. The liquidation value of Sintex Industries was much higher than the offers received from all four bidders in the first two rounds.

As per the norms of Insolvency and Bankruptcy Board of India (IBBI), the proportion of distribution of proceeds for dissenting creditors is linked to the liquidation value while the distribution for assenting creditors is linked to the offer received. This could be an incentive for lenders to vote against a plan where the offer is less than the liquidation value.

To mitigate this risk, lenders passed a resolution that the distribution of proceeds would be in proportion to security held by each lender, said the people cited above. Axis Bank had objected to this proposal, they said.

RIL-ACRE raised its offer to above liquidation value after negotiations, as reported by ET earlier.

The resolution professional Pinakin Shah and Axis Bank did not respond to ET’s request for comment till press time on Friday.

RIL had informed the stock exchanges on March 22 that a committee of creditors of Sintex Industries by a vote of 98.88% had approved the resolution plan submitted jointly by RIL and ACRE and declared them as successful resolution applicants. The voting on the plan was concluded on March 20. ACRE is an asset reconstruction company (ARC) backed by Ares SSG Capital.

Axis Bank has filed an appeal at Ahmedabad National Company Law Tribunal (NCLT), seeking a higher share of the sale proceeds. NCLT will hear that matter on May 30, according to a notice by Sintex to the stock exchange.