Joint bid by Reliance Industries, JM Financial for Alok Industries rejected

Reliance Industries on Sunday said 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.

"As intimated earlier, 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 230 billion (Rs 23,000 crore) from Alok Industries.