Lenders of Bombay Rayon Fashions, a vertically integrated textile firm involved in fabric and garment production, have declined all proposed solutions for their diverse assets. This Mumbai-based textile company has acknowledged total liabilities amounting to Rs. 7,234 crore, inclusive of Rs. 6,690 crore in financial obligations. As conveyed by Satish Kumar Gupta, the appointed resolution professional (RP) at Bombay Rayon, to the stock market, the Committee of Creditors (CoC) is no longer inclined toward any resolution plan.
JM Financial Asset Reconstruction Company and JM Financial Properties have formally expressed interest in acquiring all classifications of the company’s assets. JM Financial ARC holds the majority share of 91 per cent in the acknowledged financial claims, with Axis Bank holding the remaining 9 per cent.
Aparna Ravi, a partner at the law firm Samvad Partners, reported that the extended CIRP period for Bombay Rayon Fashions is scheduled to conclude next week, which will be followed by the RP She the RP filing an application for liquidation. She also noted that due to the receipt of multiple resolution plans and the IBC’s inclination towards resolution for the benefit of all stakeholders, it is expected that the NCLT will examine the RP regarding the reasons behind not accepting any of the resolutions.
“This case is also different from the typical situation as separate resolution plans were sought for different categories of assets of Bombay Rayon Fashion and resolution applicants were free to submit plans for all or some of the categories.” Ravi said. “Even if a liquidation order is passed, these assets could be sold on a going concern basis in liquidation.”
In March 2023, numerous companies, including Donear Group, Welspun Group, and Arvind, expressed interest in acquiring Bombay Rayon Fashion. However, with the extended CIRP period ending this month, its notable that once creditors reject a proposed resolution plan, even the Adjudicating Authority cannot alter the plan and must initiate the liquidation process as per Section 33(1) of the IBC.
Bharat Tex Special Report 2026 
