Alok Industries, which has defaulted on more than Rs 20,000 of loans, may have finally found a suitor. Reliance Industries has expressed interest in buying a part of the company, Economic Times reported.
Alok Industries is one of the 12 big defaulters identified in June by the Reserve Bank of India for bankruptcy proceedings.
Reliance Industries will not buy the complete business as it will not add to synergies. Reliance may be interested in buying Polyester yarn unit, people quoted in the economic times report said.
The bankruptcy proceedings against Alok Industries begun on June 22 after lenders moved an application to National Company Law Tribunal. The company, in its 2015-16 annual report, listed factors such as demand slump, investment calls going wrong and fluctuations in foreign exchange as key reasons for its poor performance, Business Standard had reported earlier.