(ET)
A joint resolution plan submitted by JM Financial Asset Reconstruction Co Ltd and Reliance Industries to take over distressed textiles company Alok Industries has hit a roadblock after Gail India, an operational creditor to Alok, challenged the plan before an appellate court.
In a petition filed before the National Company Law Appellate Tribunal (NCLAT) in Delhi on May 27, Gail has opposed the resolution plan because it did not consider the government-owned gas and petrochemical company’s claims, people familiar with the development said. The appellate tribunal will hear the matter on July 16.
The development is likely to further delay the resolution plan for the Mumbai-based fully integrated textile company that was in the Reserve Bank of India’s first list of 12 large corporate debtors to be referred for insolvency proceedings, released in 2017.
“Gail was not in the picture when the resolution plan was finalised,” a banker involved in the process said. “It came in late and has filed a petition to be considered. It has claimed outstanding dues of Rs 506 crore, but the total amount that operational creditors got was just Rs 4.3 crore in the approved plan so it remains to be seen whether Gail gets anything.”
