Insolvency: Binani Cement lenders vote for UltraTech’s Rs 79.60 bn offer

Insolvency: Binani Cement lenders vote for UltraTech’s Rs 79.60 bn offer

New Delhi, May 29: The Committee of Creditors (CoC) of Binani Cement voted in favour of UltraTech’s Rs 79.60 billion offer.
All 100 per cent votes were cast in UltraTech’s favour since the Aditya Birla Group firm, in its proposal, agreed to take care of all the legitimate claims of all stakeholders, said sources who attended the meeting.
Binani Cement is undergoing insolvency proceedings.
The CoC will issue a Letter of Intent to UltraTech and has informed the resolution professional about its decision. The plan will be sent to the Kolkata Bench of the National Company Law Tribunal (NCLT) for its approval on Friday, sources said.
The lenders met in Mumbai and voting took place in person. One of the leading lenders had earlier asked the CoC to be physically present at the venue for the voting process.
“There is a hearing on this case on June 4 and by then we feel that a successful bidder had to be selected,” one of the leading lenders said.
Sources in the CoC who participated in the voting said the committee overrode all its previous decision when it selected the offer from the Dalmia Bharat-led consortium as the successful bidder. After decision, UltraTech became the highest (H1) bidder replacing the Rajputana Properties-Dalmia Bharat led consortium.
Initially, after the CoC had approved Dalmia Bharat’s proposal and placed it before the Kolkata Bench of the NCLT, UltraTech and other stakeholders had contested it. The tribunal then ordered the CoC to consider the Aditya Birla group firm’s proposal, and submit a resolution plan by June 24. In case the NCLT approves UltraTech’s offer, Dalmia Bharat will contest the decision in the National Company Law Appellate Tribunal (NCLAT) and move the Supreme Court as well.
The Supreme Court admitted the Dalmia Bharat-led consortium’s allegation that UltraTech was ineligible to bid under Section 29(A) of the Insolvency and Bankruptcy Code (IBC). Hearing on the matter is slated for early next week.