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Reliance Industries along with JM Financial Asset Reconstruction has acquired the debt-laden textile company Alok Industries in a National Company Law Tribunal-driven debt resolution process.
Resolution process
RIL in a statement on Thursday said it is awaiting the outcome of the resolution process.
“Our company evaluates various opportunities on an ongoing basis and in this process has submitted a bid jointly with JM Financial Asset Reconstruction Company Ltd for resolution of Alok Industries in terms of the IBC code,” it said.
“We are awaiting for the outcome of the bid and accordingly there is no disclosure required by us at this stage,” RIL said in a BSE filing.
Insolvency proceedings
In July 2017, the Ahmedabad Bench of the National Company Law Tribunal had admitted insolvency proceedings against the textile company under the Insolvency and Bankruptcy Code.
The consortium of lenders, led by SBI, is claiming dues of over ₹23,000 crore from Alok Industries.
Vote in favour
The consortium has bid around ₹4,500-5,000 crore, which is marginally higher than the liquidation of ₹4,200 crore fixed by lenders and there is no equity allocation to the creditor, said sources.
Most of the lenders to Alok Industries have voted in favour of the resolution plan given by Reliance, he added.
The company’s scrip dipped five per cent to ₹3.85 on Thursday.
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