Bombay Rayon Fashions’ lenders reject all resolutions

The Mumbai-based company has acknowledged its liabilities, amounting to Rs 7,234 crore, with Rs 6,690 crore being attributed to financial dues.

The lenders of Bombay Rayon Fashions have turned down all the resolution proposals that were submitted for the various assets of the textile manufacturer.

The Mumbai-based company has acknowledged its liabilities, amounting to Rs 7,234 crore, with Rs 6,690 crore being attributed to financial dues.

Back in March, several companies, including Arvind from the Lalbhai Group, as well as entities associated with the Donear Group, a Welspun Group entity, and JM Financial, had expressed interest in acquiring the company through the insolvency resolution process.

Satish Kumar Gupta, the resolution professional (RP) for the company, informed that the committee of creditors (CoC) had collectively decided to decline all the resolution plans that had been received for the company’s various assets.

JM Financial Asset Reconstruction Company and JM Financial Properties had submitted expressions of interest for all categories of its assets. While JM Financial ARC held 91 per cent of the admitted financial claims, the remaining 9 per cent was held by Axis Bank.

Other applicants who submitted expressions of interest included Rashmi Metaliks, Khandwala Finstocks, Linen Arts, and Dev Land & Housing.