A clutch of operational creditors (OCs) of Alok Industries has moved the National Company Law Tribunal (NCLT), asking it to direct lenders to stall the liquidation process and accept a resolution plan submitted earlier. Separately, a plea has been moved by an employee on behalf of the Silvassa-based textile manufacturer’s 4,000 tribal employees.

Both the petitions, copies of which were seen by BusinessLine , were filed before NCLT’s Ahmedabad Bench on Tuesday. The Bench is slated to hear the liquidation plea, and another plea an employees’ trust (again against liquidation), on Wednesday.

In its interlocutory application, the OCs — mainly MSMEs — want the tribunal to direct the Committee of Creditors (CoC) to approve a ₹5,050-crore resolution plan submitted earlier by a consortium led by Reliance Industries Ltd and JM Financial Asset Reconstruction Company. On April 15, the CoC had rejected the plan.

The OC’s petition has also requested the tribunal not to pass any order for liquidation. About 10 OCs, mainly suppliers of raw materials (cotton, yarn and purified terephthalic acid, among others), moved the tribunal on behalf of Alok Industries’ nearly 1,000 vendors, claiming an outstanding of ₹700 crore.

When contacted, a spokesperson for the OCs confirmed the development.

A petition filed on behalf of tribal employees seeking to stall the liquidation process said Alok employs more than 4,000 tribals.

“The application is filed taking into consideration the best interests of the corporate debtor, more particularly for its revival and resolution as envisaged by the (Insolvency and Bankruptcy) Code and to protect the livelihood and employment of the tribal workforce,” it added.

The petition, filed by an employee, Bharat Patel, represents workers from 72 villages near by.

It also sought to approve the revival plan submitted by RIL-JM. When contacted, Patel confirmed the filing, but declined to divulge the details.

​

Related Topics