Binani Cement Lenders Vote In forUltraTech Bid
The committee of creditors for Binani Cement Ltd. voted in favour of accepting UltraTech Cement Ltd.’s Rs 7,950 crore bid, people in the know confirmed.
The bid is nearly Rs 1,000 crore higher than the amount offered by Rajputana Properties Ltd who’s the other bidder being considered by creditors. Rajputana Properties is a wholly owned subsidiary of the Dalmia Bharat Group. Financial creditors led by Edelweiss Asset Reconstruction Company Ltd. voted to accept UltraTech Cement’s offer as the highest bid received under the insolvency and bankruptcy process initiated against Binani Cement.
According to admitted claims available on the company’s website, Binani Cement owes Rs 6,469 crore to its financial creditors.
The National Company Law Tribunal had asked lenders to reconsider UltraTech Cement’s bid after they had rejected it earlier. UltraTech Cement was not allowed to revise its bid for Binani Cement since lenders had agreed to not entertain the second highest bidder in the case. UltraTech Cement tried multiple times to revise its bid for Binani Cement, butthe creditors did not consider it.