A group of Alok Industries employees are attempting to bid for the assets of the textile company, which is up for sale after being referred to the bankruptcy court, an officials from the banking industry informed. Employees, who made the move, will likely be competing with Reliance Industries (RIL), which has shown an interest in acquiring the textile company — either partly, or completely. The State Bank of India, the lead bank in the group of lenders to Alok Industries, had referred it to the National Company Law Tribunal in July, following directions from the Reserve Bank of India. Some employees have jointly submitted a resolution plan for the company, last week. The company has received claims of Rs 29,519 crore from financial creditors and Rs 624 crore from operational creditors.

Resolution professional for Alok Industries has implemented conditions such as a net worth of Rs 500 crore and assets of Rs 3,000 crore for companies that want to participate in the resolution plan. In addition, the bid party should have an ability to invest at least Rs 500 crore as equity capital in the company.

Alok Industries has four core divisions: Cotton yarn, apparel fabric, home textile and polyester yarn. RIL, which has a petrochemicals business, is keenly interested only in the polyester yarn unit. Alok Industries' lenders had attempted to revive the business through a strategic debt restructuring scheme which permits lenders to convert part of their debt into equity and sell it to a new promoter. But the plan derailed following an order by the Bombay HC that stayed the sale of assets and any change in the company's equity structure. The court issued the order following a petition filed by HSBC on behalf of a few unsecured lenders to settle $55 million (Rs 353 crore) in arrears.