The committee of creditors for Alok Industries has approved a joint resolution plan submitted by Reliance Industries and JM Financial Asset Reconstruction valued at around Rs 5,000 crore, the resolution will use 4,000 crore to repay financial creditors. As per the claims admitted by the resolution professional in the case, financial creditors have submitted claims worth over Rs 29,000 crore.
Seventy-two per cent of creditors by value of loans voted in favour of the resolution plan. After a recent amendment to the Insolvency & Bankruptcy Code, 66 percent of creditors by value now need to approve a resolution plan for it to go through, as against 75 percent earlier.
Alok Industries is one of the 12 large companies to have been sent to the National Company Law Tribunal for insolvency proceedings after the Reserve Bank of India shortlisted them in June 2017. These companies together accounted for Rs 2.77 lakh crore worth of bad loans in the banking system.
