Binani Cement lenders postpone meet on UltraTech plan

28th May 2018

The committee of creditors’ (CoC) meet with respect to insolvent Binani Cement, which was scheduled for Thursday, has been postponed as the resolution plan submitted by UltraTech Cement in the “format acceptable” to the creditors is still being negotiated, sources said.

The resolution professional (RP) of insolvent Binani Cement said verification of over 100 new claims was being completed on Wednesday.

The RP and the CoC have sought some clarifications from the Aditya Birla Group’s UltraTech Cement on its proposed resolution plan.

Meanwhile, Dalmia Bharat-controlled Rajputana Properties (RPPL) has not raised its offer of around Rs 6,930 crore for the debt-laden cement maker. According to sources, Dalmia Bharat also wrote a letter to the RP on Tuesday urging him to share the resolution plan of UltraTech Cement with it.

The CoC in its last meeting, held on May 18, had asked Dalmia Bharat to match the Rs 7,960 crore revised offer from rival bidder UltraTech Cement by May 23. This bid of Dalmia Bharat, which includes an infusion of working capital and capex, had been declared the highest bid (H1) on February 27.

The CoC was scheduled to meet on May 24 to consider the bids of Dalmia Bharat and UltraTech.

“The CoC cannot even consider UltraTech’s resolution plan without first deciding UltraTech’s eligibility under Section 29A of the Insolvency and Bankruptcy Code, and accordingly, there is no question of proceeding further or requiring RPPL to match, until UltraTech is found to be eligible,” Dalmia Bharat told Iyer and members of the CoC in that letter.

Source: TNN