SIDBI files winding up petition against Alok Industries

Small industries' lender SIDBI has filed a winding up petition against textile firm Alok Industries, which is already facing debt restructuring action by a consortium of lenders led by SBI for recovery of loans.
While the company did not disclose the outstanding loan amount, media reports have pegged it at over Rs 20,000 crore.
"SIDBI has indeed filed a winding up petition against the company in the Bombay High Court on 20 October, 2016 and the same is in pre-admission stage. As far as the effect the above filing has on the banks, we cannot comment on the same," Alok Industries said in a regulatory filing.

The company said it has not yet been served with a copy of the petition by SIDBI and added that "only when the same is served to us, we can proceed to file an affidavit-in-reply in the said matter".
"In the interim, our counsel has written a letter to SIDBI on 3 November, 2016 updating them on the various options being considered by the company's lenders for a sustainable solution," it said.
In January, the company had said in a regulatory filing that strategic debt restructuring (SDR) has been invoked and the Joint Lenders' Forum (JLF) has decided to acquire up to 65 per cent stake in the company by converting its debt into equity.

For the June-end quarter, Alok Industries reported a net loss of Rs 1,212.04 crore, against Rs 349.68 crore in the year-ago period.