Business

RIL-JM Financial ARC Fresh Bid For Alok Industries Accepted By Majority Lenders

Reliance Industries’ resolution plan to acquire the debt ridden textile firm Alok Industries has received the nod from majority of its lenders.

In an earlier attempt made on April 12, the Committee of Creditors (CoC) of Alok Industries had turned down RIL’s resolution proposal to acquire the firm. RIL had planned to acquire the firm in conjunction with JM Financial Asset Reconstruction Company.

After the rejection, Alok Industries was faced with insolvency. Subsequently, on an order dated June 11, 2018, the National Company Law Tribunal, Ahmedabad, the acquisition resolution was put to vote before the CoC on June 20, 2018.

According to the RIL regulatory filing, "After the voting process was completed, the resolution plan found acceptance among 72.192% among the CoC members.” In a separate filing, Alok Industries confirmed the occurrence.

Prior to this, on May 25, 2018, Alok Industries intimated that the Resolution Professional of the company had filed an application to NCLT in favor of liquidation of the company. At that stage no order had been passed. The company had also sought exemption from filing quarterly and annual results owing to the fact that it faced liquidation.

The State Bank of India led the consortium of lenders to Alok Industries and was claiming over INR 23,000 crore as dues.