The Ahmedabad bench of the National Company Law Tribunal (NCLT) on Wednesday deferred till July 18 the hearing for admission of insolvency proceedings against Alok Industries filed by State Bank of India. Alok Industries, according to sources, admitted its default to SBI to the tune of Rs 3,700 crore before the NCLT, which may hence lead to eventual admission by the court. Lenders to Alok Industries had begun insolvency proceedings against the textile firm in June by moving an application before the NCLT.
The joint lenders’ forum (JLF) approved a move by SBI to file the application under the Insolvency and Bankruptcy Code (IBC). This followed the Reserve Bank of India’s directive to lenders to initiate the corporate insolvency resolution against 12 such non-performing accounts.
Besides Alok Industries, the accounts identified by the RBI include Amtek Auto, Bhushan Steel, Essar Steel and Bhushan Power and Steel. The list also includes Monnet Ispat, Electrosteel Steels, Era Infra, Jaypee Infratech, Lanco Infratech, ABG Shipyard and Jyoti Structures as defaulting borrowers.
Alok Industries reported a consolidated loss of Rs 3,071 crore on an income of Rs 8,919 crore in FY17. The company had posted a loss of Rs 4,367 crore on revenues of Rs 12,929 crore in FY16.