Binani Cement Lenders Asked To Consider Revised UltraTech Offer
Binani Cement Lenders Asked To Consider Revised UltraTech Offer
Binani Cement Ltd.’s committee of creditors were today directed by the National Company Law Tribunal to consider a revised offer from UltraTech Cement Ltd.
The Kolkata bench of the NCLT asked UltraTech to place a fresh bid before Binani Cement’s resolution professional in three days and extended the resolution process till June 24. The 270-day period for Binani Cement’s insolvency process would have ended in April, had the NCLT not provided this extension.
The tribunal also allowed Dalmia Group to match UltraTech’s revised offer, if it so chooses.
UltraTech’s first bid for Binani Cement under the Insolvency and Bankruptcy Code was less than Dalmia group’s offer. The CoC at the time had decided to only negotiate with the highest bidder. UltraTech had then attempted to revise its offer for Binani Cement, however, the CoC and the RP did not allow for this.
Thereafter, in a parallel deal, UltraTech signed an agreement with Binani Industries Ltd. to buy its cement assets for Rs 7,266 crore and said it will seek termination of the insolvency process. This decision was subject to lenders agreeing to withdraw from the NCLT.
Over the last two months, UltraTech has been revising its bid for Binani Cement and is now said to be offering over Rs 8,000 crore, which would cover for all financial and operational creditor dues.
During this period, the CoC had already listed the Dalmia Group as the preferred bidder for Binani Cement.
Binani Industries had also approached the Supreme Court last month to get lenders to agree to an out-of-court settlement. However, it later withdrew the petition saying it was premature.
Sameer Kaji, senior adviser of Binani Industries and the Braj Binani Group had earlier told BloombergQuint that the group would wait for the NCLT’s decision in the matter to decide future course of action.
BloombergQuint
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