Debt-ridden Alok Industries may get a new lease of life as the lenders may soon pass a resolution plan for the company, preventing it from going into liquidation, said people familiar with the matter.
The Rs 5,050 crore offer for Alok Industries, proposed by the Reliance Industries and JM Financial ARC consortium are confident that it will gain the requisite vote of the lenders, sources told CNBC-TV18.
The decision came after National Company Law Tribunal (NCLT) Ahmedabad bench asked the lenders or the core committee to re-look at the resolution proposal.
In April, the plan had been rejected by the committee of creditors as it received 70 percent votes against the minimum requirement of 75 percent.
This time, with the amended Insolvency and Bankruptcy Code (IBC), the proposal requires only 66 percent votes. Therefore, the bankers are hopeful that Alok Industries may be saved from the liquidation.
Alok Industries is the only textile company in the list of twelve large stressed accounts identified by the Reserve Bank of India for insolvency proceedings in June 2017.
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