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legal | IST

Alok Industries' lenders agree to consider revised resolution plan

Lenders to Alok Industries’ lenders have agreed to consider revised resolution plan for Alok Industries, sources say.
The Committee of Creditors (CoC) will now meet to vote on new offer of Rs 5,050 crore presented by Reliance Industries Ltd and KM Financial ARC, they said.  Liquidation value of the company is  pegged at Rs 4200 crore.
Voting for new offer from RIL and JM Financial ARC to close at 11 pm on April 13, 2018.
The 270-day deadline for Alok Industries under IBC is ending tomorrow.
 
The interim resolution professional (IRP) for Alok Industries Ltd. called for an emergency meeting of the committee of creditors (CoC) on Friday, after the debt resolution plan failed.
Reliance Industries Ltd (RIL) and JM Financial Asset Reconstruction Co. Ltd, had on Thursday submitted a joint bid to buy Alok Industries.
The offer involved RIL buying Alok Ind for Rs 4800 crore, and JM FIn ARC taking debt of Rs 25,000 crore.
The offer was not cleared, as the offer was close to Alok Industries' liquidation value of Rs 4200 crore. Lenders were of the opinion that the offer did not meet their terms.
The two companies have now said they would scrutinise at the terms of their bid and revise their offer for Alok Industries, which is facing claims of over Rs 29,400 crore from creditors.
Reliance Industries told CNBC TV18 that the company does not comment on media speculation, and that it had made all necessary disclosures related to the bid.
The 270-day deadline that was set for the debt ridden textile manufacturer under the insolvency and bankruptcy code (IBC), is to end on Saturday, April 14th.
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) had admitted insolvency proceedings against the textile company under the Insolvency and Bankruptcy Code (IBC) in July 2017.