Majority of lenders to debt-ridden Alok Industries approve sale of textile firm to RIL

New Delhi: Majority of lenders of textiles firm Alok Industries have approved Reliance Industries’ resolution plan to acquire the debt ridden company. The Committee of Creditors (COC) of Alok Industries had earlier rejected RIL’s resolution plan submitted on 12 April for acquiring the firm in conjunction with JM Financial Asset Reconstruction Company. Following this, Alok Industries was facing insolvency. [caption id=“attachment_4572901” align=“alignleft” width=“380”] RIL logo. Reuters image.[/caption] “Pursuant to the order dated 11 June, 2018 passed by National Company Law Tribunal, Ahmedabad, the Resolution Plan was put to vote before the CoC of the Company on 20 June, 2018. “Pursuant to the voting, the Resolution Plan has received the assent of 72. 192% of the voting share of the CoC,” RIL said in a regulatory filing. Alok Industries also confirmed the development in a separate filing. On 25 May, Alok Industries had informed that the Resolution Professional of the company has filed an application before the NCLT for liquidation of the company and no order has been passed by it. It had sought exemption in filing of quarterly and annual results as it was facing liquidation. The CoC of Alok Industries could not approve resolution plans for the company within 270 days mandated under IBC. In July 2017, the Ahmedabad bench of the NCLT 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 Rs 23,000 crore from Alok Industries. (Disclosure - Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)