Employees of debt-ridden Alok Industries have dashed off letters to the chairmen of nearly ten banks asking them to accept a resolution plan submitted by a consortium led by Reliance Industries.
They are of the opinion that the resolution plan will ensure the livelihood of about 18,000 employees, while the lenders will receive much more from the process.
Silvassa-based textile manufacturer Alok Industries was among the 12 first large non-performing assets identified by the Reserve Bank of India for resolution under the Insolvency and Bankruptcy Code in June 2017.
Alok currently employs 18,000 personnel (which at the peak was 30,000), generates revenue of Rs 35,000 crores and supports 3,500 vendors.
Nearly 30 per cent of the total lenders had rejected the resolution plan submitted by a consortium led by Reliance Industries. Subsequently, the Resolution Professional (RP) referred the company for liquidation.
The resolution plan offered the lenders a cash settlement of Rs 5,050 crores, which is well above the liquidation value of Rs 4,200 crores. This payment was to be made upfront and be available for the lenders for immediate deployment in further lending.