Mutual Fund

Dena, Kotak banks withdraw plea against Alok Industries RP

Dena Bank and Kotak Mahindra Bank Ltd, two dissenting financial creditors of debt-ridden textile maker Alok Industries Ltd, have withdrawn their applications against the resolution professional (RP) from the bankruptcy court, after being assured of recovery at par with lenders who had approved the resolution plan, court documents showed. Dissenting financial creditors are those lenders who have either abstained from voting or voted against the resolution plan approved by the committee of creditors (CoC). The appellate tribunal—NCLAT—had clarified in its order in a different case on 12 September, 2018 that no discrimination can be made between the financial creditors in the resolution plan on the ground that one has dissented and voted against the resolution plan or the other has supported and voted in favour of the resolution plan.

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