MUMBAI: Alok IndustriesBSE 0.60 % will seek protection from lenders as its plays to approach BIFR on grounds that 50% of its net worth has been wiped out as on March 2016.

The developments comes at a times lenders are struggling to recover their Rs 20,000 crore loan which is now classified as non-performing loan by all banks. In a notice to the stock exchange the company said that the board on Friday decided to seek protection under BIFR and it has called for an AGM on November 19 to seek shareholders approval.

Bankers failed to revive the company after the company failed to implement corporate debt restructuring scheme. Subsequently attempts to revive the company also did not yield any positive results. For instance, lenders tried to find new promoters for the company under the Strategic Debt Restructuring scheme which allows banks to convert their debt into equity and get a new buyer for their stake

A company is declared a sick unit if half of their networth is wiped off and they can seek projection under BIFR or Board of Industrial and Financial Reconstruction with the aim to revive the company.

Meanwhile, HSBC has filed a winding up petition along with unsecured lenders to recover its outstanding dues worth $55 million.

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