Alok Industries hits 5% UC

Alok Industries hit the 5% UC at Rs.3.37 the moment it opened for trading today morning.

There is once again unconfirmed news that the committee of creditors for Alok have approved the Joint Resolution Plan from Reliance Industries and JM Financial Asset Reconstruction Co. This plan is reportedly, as per Bloombergquint, valued at around Rs.5000 crore of which Rs.4000 crore would be used to repay the debtors. The claims of financial creditors is stated to be over Rs.29,000 crore.

As against the rule, which stipulates that under the Insolvency & Bankruptcy Code, where instead of 75%, 66% of creditors are required to approve a resolution plan for it to go through, Alok is said to have garnered vote of 72% of the creditors.

There is now word on the same from the company yet. But the market is apparently thrilled.