RIL, JM Financial Bid to Acquire Alok Industries Rejected

Reliance Industries Ltd. (RIL) said the its resolution plan for acquiring Alok Industries in conjunction with JM Financial Asset Reconstruction Company has been rejected by the Committee of Creditors. RIL had bid jointly with JM Financial to acquire the debt-ridden textile manufacturer Alok Industries Ltd.

“Reliance Industries Limited in conjunction with JM Financial Asset Reconstruction Company Limited submitted a resolution plan for Alok Industries Limited. We have been informed that our plan did not meet with the approval of the Committee of Creditors of Alok Industries as required under the Insolvency and Bankruptcy Code,” RIL said in a regulatory filing to the exchanges. In July 2017, the Ahmedabad bench of the National Company Law Tribunal had admitted insolvency proceedings against the textile company under the Insolvency and Bankruptcy Code. The consortium of lenders, led by SBI, is claiming dues of over Rs. 23,000-crore from Alok Industries.