Reliance Industries Limited in conjunction with the JM Financial Asset Reconstruction Company had submitted a resolution plan for Alok Industries Limited. The beleagured stock had risen sharply on the news last week.
However Reliance Industries has now informed the BSE that the Rs. 5,000 crore plan did not meet with the approval of the Committee of Creditors of Alok Industries. This approval is required under the Insolvency and Bankruptcy Code for the plan and potential acquisition to go forward.
The JM-RIL combine was the only bidder for the asset. The offer of Rs. 5,000 crore is against an outstanding debt with Alok Industries of Rs 29,000 crore, and lenders are insisting on certain conditions being met before approving any plan.