On a day when the National Company Law Tribunal (NCLT) endorsed ArcelorMittals bid to take over Essar Steel, the tribunal also gave the green light to a 5,050-crore joint bid by Reliance Industries Ltd. (RIL) and JM Financial Asset Reconstruction Company to acquire debt-ridden textile manufacturer Alok Industries.
In July 2017, the Ahmedabad bench of the NCLT had admitted insolvency proceedings against the textile company under the Insolvency and Bankruptcy Code (IBC). According to the details of the case, Alok Industries owed its lenders 29,500 crore and was taken to NCLT under the newly-instituted IBC.
However, against the total dues of 29,500 crore, RIL and JM Financial had jointly made a bid to acquire it for just 5,050 crore, which …
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