Binani Cement Ltd’s committee of creditors were on Wednesday 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 24 June.
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.
Expressing “surprise” at the tribunal’s decision, a Dalmia Bharat spokesperson said, “Any revised offer from an unsuccessful resolution applicant outside the resolution process cannot become a basis of setting aside the decision of the CoC.” The resolution professional and lenders’ panel followed due process of law in approving the plan of Dalmia’s wholly owned subsidiary Rajputana Properties, the spokesperson said in an emailed statement.
Dalmia said it will take “all the appropriate steps” needed on the deal.
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.
Following the tribunal’s decision, Sameer Kaji, senior adviser of Binani Industries and the Braj Binani Group told BloombergQuint, “There won't be any out-of-court settlement, it will be within the resolution process”.
(This article was originally published on BloomergQuint.)
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