Eagle Group has received lenders' go-ahead for buying the insolvent textile company Sumeet Industries Limited (BSE:514211). Lenders led by Bank of Baroda voted for Eagle's INR 2,310 million plan that includes upfront cash of INR 2,030 million to be paid in 180 days and another INR 280 million worth of equity in the company, people familiar with the details of the plan said. Eagle pipped rivals that included Silvassa-based Geelon Industries Private Limited and Gujarat-based Gajera Group by offering to bear the INR 25 crore corporate insolvency resolution process (CIRP) costs over and above its offer, people familiar with the details of the plan said.

"Gajera's bid was actually higher at INR 2,350 million but it was riddled with many conditions, primarily that the company will bear CIRP costs only up to INR 50 million which was the deal-breaker. Lenders were more comfortable with not sacrificing anything due to CIRP costs, " said a person familiar with the plan. In a notice to the stock exchanges Sumeet Industries said that Eagle Group received 74.90% of the votes.

The voting period lasted a month after beginning on October 25. Resolution professional Satyendra Khorania will now move the Ahmedabad NCLT seeking approval for the plan. Khorania did not reply to ET's email seeking comment.

Sumeet, also based in Surat, has been classified as a non-performing account (NPA) with banks for more than three years. It owes lenders led by Bank of Baroda (BoB) more than INR 9,000 million including about INR 5,300 million in principal.