Binani’s creditors decides to stick with Dalmia Bharat’s offer

Binani’s creditors decides to stick with Dalmia Bharat’s offer
06/04/2018 , by , in ALLIED

Binani Cement Limited’s Committee of Creditors (CoC) have decided to stick with the Rs 6,350 crore offer from Dalmia Bharat Cement for the debt-ridden firm’s sale. The decision was taken at a late night meeting of the CoC held in Kolkata.

The CoC did not approve the offer from its promoters Binani Industries Ltd. (BIL), which is pitching for Rs 7,266 crore offer from the Aditya Birla Group firm UltraTech Cement, due to legal implications, sources said.

The CoC today met in Kolkata after the National Company Law Tribunal (NCLT) directed it to reconsider the proposal from the promoter BIL.

After the meeting, BIL, however, has not ruled out exploring the possibilities of approaching higher authorities challenging the decision of the CoC to sell the BCL to Dalmia Bharat group.

“All options for us remain open,” said a BIL official, hinting that they may challenge the decision with a higher appellate authority such as the Supreme Court.

The next hearing of the matter will take place at the Kolkata bench of the NCLT on April 9.

Yesterday, the National Company Law Appellate Tribunal (NCLAT) had asked the parties in the dispute to amicably settle the matter.

Dalmia Bharat group, through its wholly-owned subsidiary, Rajputana Properties, had emerged as the highest bidder with an offer to pay Rs 6,350 crore for Binani Cement.

However, later, UltraTech Cement entered into an agreement with BIL to buy 98.43 per cent stake in BCL. It had also agreed to issue a comfort letter to provide Rs 7,266 crore to Binani Industries Ltd for ending insolvency proceedings against Binani Cement.

All the parties are presently entangled in litigations before the Kolkata bench of NCLT and NCLAT.


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