Binani Industries to move Supreme Court with Rs 7,618 cr offer, has assurance of support from most lenders, says co

Binani, backed by Aditya Birla groups UltraTech Cement, has already received comfort letter for financial support.

PTI April 09, 2018 07:47:18 IST
Binani Industries to move Supreme Court with Rs 7,618 cr offer, has assurance of support from most lenders, says co

Kolkata: Binani Industries has decided to move the Supreme Court with an appeal to redeem the pledge of its assets in debt-ridden subsidiary Binani Cements Ltd from its lenders and will also submit 10 percent of the offer to prove its commitment, a company official said on Sunday.

"We are moving the Supreme Court for sure. We have assurance of support from most of the lenders for this move," a Binani group spokesman told PTI.

Redeeming the pledge will mean seeking an end to the bankruptcy proceedings against it from the National Company Law Tribunal (NCLT).

The Committee of Creditors (CoC), despite supporting the Rs 7,618 crore offer, declined to accept it due to lack of clarity in legal interpretation in several rounds of meeting held both yesterday and today.

The Binani group had sought lenders support on whether it should move the apex court or not.

Binani Industries to move Supreme Court with Rs 7618 cr offer has assurance of support from most lenders says co

Representational image. Reuters

Lenders, part of the Committee of Creditors (CoC), desired that there was no problem in the offer unless a higher adjudicating authority permits it.

Binani, backed by Aditya Birla groups UltraTech Cement, has already received comfort letter for financial support.

Binani has agreed to pay the interest till date since the insolvency proceedings started.

From the day insolvency proceedings were initiated by NCLT, the interest on dues are not charged.

UltraTech Cement entered into an agreement with Binani Industries to buy 98.43 per cent stake in Binani Cements. Operational creditors are supporting UltraTech backed Binani offer as it covers entire claim.

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 Cements.

The fate of the takeover is hanging in the balance and is set to reach the Supreme Court.

Binani group is hoping to get a favorable outcome from the apex court that will empower the CoC to consent to an out-of-court settlement even after Dalmia Bharat's final voted offer had been submitted before the NCLT, Binani and lenders sources said.

Bharat Dalmia officials has said any out-of-court settlement, while a company undergoes bankruptcy proceedings, will set a bad precedent.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

SC upholds NCLAT order allowing UltraTech to acquire Binani Cement, rejects Dalmia Bharat group firm’s plea
Business

SC upholds NCLAT order allowing UltraTech to acquire Binani Cement, rejects Dalmia Bharat group firm’s plea

The Supreme Court upheld the NCLAT's last week order which had allowed the Aditya Birla group firm to acquire Binani Cement by approving its revised Rs 7,950.34 crore bid.

Ultra Tech to acquire Century Textiles and Industries' cement business through share swap deal
Business

Ultra Tech to acquire Century Textiles and Industries' cement business through share swap deal

Aditya Birla Group firm UltraTech said it would acquire cement business of BK Birla Group company Century Textiles and Industries through a share swap deal

NCLAT approves UltraTech's Rs 7,900 cr bid for Binani Cement, rejects resolution plan submitted by Dalmia Bharat
Business

NCLAT approves UltraTech's Rs 7,900 cr bid for Binani Cement, rejects resolution plan submitted by Dalmia Bharat

In approving UltraTech's resolution plan for Binani, which was auctioned to recover unpaid bank dues, the NCLAT may have set a precedence as it favoured a proposal that not just paid the financial lenders but also operational creditors.