Committee of Creditors yet to approve resolution plans: Alok Industries

Yesterday, Reliance Industries, which had submitted a resolution plan along with JM Financial Asset Reconstruction Company for Alok Industries, had informed that its bid has been rejected by the CoC.
Image for representational purpose only.
Image for representational purpose only.

NEW DELHI: Debt-ridden Alok Industries today said the Committee of Creditors (CoC) has not approved resolution plans for the company within 270 days mandated under the Insolvency and Bankruptcy Code (IBC).

"The corporate insolvency process for the company expired on April 14, 2018 and the resolution professional has not received the approval of the CoC for resolution plans within the time period prescribed under the IBC, 2016," it said in a BSE filing.

Yesterday, Reliance Industries, which had submitted a resolution plan along with JM Financial Asset Reconstruction Company for Alok Industries, had informed that its bid has been rejected by the CoC.

As per the IBC, the resolution process should be completed within 180 days.

This could be further extended for another 90 days with the approval of National Company Law Tribunal (NCLT).

In July 2017, the Ahmedabad bench of NCLT had admitted insolvency proceedings against the textile company under the IBC.

A consortium of lenders led by SBI is claiming dues of over Rs 23,000 crore from Alok Industries.

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