The National Company Law Tribunal has directed the resolution professional of Alok Industries to resubmit the plan submitted by JM Financial Asset Reconstruction and Reliance Industries to the Committee of Creditors for reconsideration.

In the light of the provisions of the Insolvency & Bankruptcy Code (Amendment) Ordinance, the National Company Law Tribunal, Ahmedabad bench, has directed the resolution professional to convene a meeting of the committee of creditors and present the resolution plan that was voted upon in its April meeting before the committee for consideration, said Alok Industries on Tuesday.

In April, the committee had rejected the two bids submitted by both the companies as the offer was too low and decided to liquidate the asset to recover the dues.

However, the employees of Alok Industries and operational creditors moved the NCLT against the CoC decision on liquidation.

The two bidders for the company had offered to pay ₹5,000 crore against the company’s total recoverable debt of about ₹30,000 crore.

The resolution plan submitted by both the companies received only 70 per cent votes from the CoC against the minimum requirement of 75 per cent under the Insolvency and Bankruptcy Code.

However, the government has recently amended the IBC and lowered the threshold limit for acceptance of resolution plan with 66 per cent vote of CoC.

Interestingly, Alok Industries is the only textile company among the bunch of steel and infrastructure companies in the list of 12 large stressed accounts identified by the Reserve Bank of India for insolvency proceedings in June 2017. The 270-day deadline for resolution set for Alok Industries under the insolvency code has already expired.

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