Binani Cement lenders to meet today to mull UltraTech revised offer

Kolkata, May 8: The Committee of Creditors (CoC) of Binani Cement is likely to meet on Wednesday this week to consider the revised offer of Rs 79.60 billion from UltraTech Cement for acquisition of the stressed assets of Binani Cement. The company is currently undergoing insolvency proceedings in the Kolkata bench of NCLT.
This follows the NCLT’s order which directed the CoC to consider the Aditya Birla Group company’s proposal despite it being termed as the “unsuccessful bidder” by the CoC. The Tribunal had ordered Binani Cement’s resolution professional (RP) to submit the revised proposal from UltraTech to the CoC and also accommodated any modifications to the proposal if necessary.
Previously, the CoC had narrowed upon last Saturday (May 5) to hold the meeting but then pushed it to Monday (May 7) as the RP had sought some clarifications from NCLT on its order. Sources close to the RP said that the clarifications over the admissible bid amount from UltraTech, which was sought, have been given by NCLT and its proposal has been sent to the lenders for their consideration.
Sources among the lenders suggested that in the forthcoming meeting, only UltraTech’s proposal will be discussed and if accepted, the lenders will ask the Dalmia Bharat Cement led consortium – the H1 bidder – to match the proposal.
“In case Dalmia Bharat ups their offer and matches, it will again come back to the CoC for their consideration and the two offers will be discussed again but if Dalmia Bharat doesn’t raise its bid, it is likely that UltraTech’s proposal will make its way through”, a leading lender to Binani Cement suggested.
In case Dalmia Bharat raises its bid, UltraTech will have to quote higher and revise the proposal again.
As per NCLT’s order, the CoC is bound to give the otherwise H1 bidder the chance to match the proposal from UltraTech but has directed the CoC to “bear in mind the object(ive) of the IBC”, which according to the Tribunal is maximisation of value.
Lenders have decoded the NCLT’s order to imply that among UltraTech and Dalmia Bharat, whoever offers the highest money and clears the maximum dues of both the financial as well as operational lenders, will be selected to acquire Binani Cement.