Published On:June 23 2018
Story Viewed 1035 Times
JM Financial, Reliance Industries set to buy Alok Industries for Rs 50 bn
Lenders to bankrupt textile company Alok Industries have approved a joint resolution plan submitted by Reliance Industries (RIL) and JM Financial Asset Reconstruction Company (JMF ARC). According to the plan, the combine will acquire Alok Industries for Rs 50.50 billion, of which the lenders will receive Rs 40 billion.
The corporate debtor owes banks Rs 295 billion, which means they are taking a haircut of more than 86 per cent.
Sources said voting by the members of the committee of creditors (CoC) began on Thursday night and as of Friday morning, around 72 per cent of the lenders voted in favour of the RIL-JM ARC resolution plan.
Business Standard sent an email to the resolution professional for Alok Industries, Ajay Joshi, but he declined to comment on the development.
This was the second round of voting to consider a bid by the combine. Their first offer of Rs 40.50 billion was rejected by the CoC in April, as only 70 per cent of the creditors had voted in its favour.