Alok's lenders fail to finalize buyers owing to legal trouble

Lenders and promoters of debt-stricken Alok Industries, which was taken over earlier this year under the strategic debt restructuring (SDR) route, have failed to bring in buyers and have revised talks with foreign pension funds to pump in equity in a last-ditch effort to save the day.Sources have told CNBC-TV18, that KKR, SSG and Vardhaman Textiles, all of whom were interested in picking up stake in Alok, have backed out of the deal due to valuation mismatch.An ongoing case with HSBC filed in the Bombay High Court has been the major hindrance to the deal, in which the HC has barred Alok from selling stake of or infusing equity into the company till a winding-up petition filed by the lender is settled.HSBC had filed a petition for non settlement of dues worth USD 55 million from a loan of USD 125 million. Alok Industries has debt of over Rs 20,000 crore, which was brought under SDR in January. The company currently has negligible marketable securities and may be valued only on its debt, say sources.Watch video for more