JM Financial Asset Reconstruction Company has emerged as the sole bidder for Alok Industries.Alok Industries has received claims of Rs 29,500 crore from lenders with State Bank of India being the lead bank. One of the officials cited earlier, “With the 270 days deadline three days away — on April 14 — lenders are not in a position to bargain a better deal”

On Wednesday, the resolution professional had held a meeting of committee of creditors to vote for the resolution plan. Senior officials said most lenders have given a positive vote for the plan. The actual percentage of votes in favour and against will be known only on Thursday since the voting was on till late evening

However, lenders rejected it since JM Financial ARC did not disclose the name of the strategic partner. Lenders felt that the bidder has to comply with Section 29(A), which bars defaulters from bidding for resolution plan and therefore names of strategic partners have to be disclosed for them to take a decision on the bid. The second round of bidding concluded on March 27

Alok Industries is one of the few companies wherein the resolution professional (RP) has called for a resolution plan several times after it was admitted. In March alone, the RP invited binding bids twice. The RP had set a deadline of March 13 when it received just one bid from JM Financial ARC. If 75 per cent of the lenders in terms of value of loan give their consent to the plan, the RP has to submit it to the NCLT for approval

JM Financial had bid, in partnership with Reliance Industries, for Alok Industries, making an all cash offer in the range of 15-20 per cent of outstanding loan, they said. “The offer is marginally higher than the liquidation value of the company and that is the reason that banks are willing to vote in favour,” one of them said. The liquidation value of the company is pegged at Rs 4,200 crore while the offer is in the range of Rs 4,500-5,000 crore, the sources said. There is no equity upside for lenders under the proposal given by JM Financial ARC and Reliance

Reliance Industries set to acquire Alok Industries, majority of lenders to the bankrupt textile company voting in favour of the resolution plan given by billionaire Mukesh Ambani’s company, two officials familiar with the development said