IBC masterstroke: After successful bad loans resolution of Bhushan Steel and Electrosteels Steel, textiles firm Alok Industries has come close to the final stage as its majority of lenders approved Reliance Industries’ resolution plan to acquire the debt-ridden company. Alok Industries was one of the accounts identified by the Reserve Bank of India (RBI) in its first list called the ‘Dirty Dozen’ for immediate resolution under the Insolvency and Bankruptcy Code (IBC). Alok Industries has outstanding loans of over Rs 23,000 crore.
The Committee of Creditors (COC) of Alok Industries had earlier rejected RIL’s resolution plan submitted on April 12 for acquiring the firm in conjunction with JM Financial Asset Reconstruction Company. “Pursuant to the order dated June 11, 2018 passed by National Company Law Tribunal, Ahmedabad, the Resolution Plan was put to vote before the CoC of the Company on June 20, 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.
However, this comes days after Alok Industries’ lenders failed to approve resolution plans for the company within 270 days mandated under the IBC. On May 25, Alok Industries had informed that the Resolution Professional of the company has filed an application before the NCLT for the liquidation of the company and no order has been passed by it. It had sought the exemption in the filing of quarterly and annual results as it was facing liquidation. The resolution plan by RIL now awaits NCLT’s final approval.