Home >Companies >News >Binani Cement’s lenders to meet on Friday to consider Ultratech’s revised bid

Kolkata: The resolution professional for Binani Cement Ltd has convened a meeting of the company’s lenders on Friday in Mumbai to consider the revised bid of Ultratech Cement Ltd after cancelling last week’s scheduled meeting in view of objections raised by Dalmia Bharat Ltd about the AV Birla group company’s eligibility to bid.

Binani Cement’s committee of creditors was to meet on Thursday, 10 May, but Vijaykumar Iyer, the resolution professional called off the meeting, after Dalmia Bharat, which was earlier chosen as the successful bidder, claimed Ultratech was ineligible to bid under section 29A of the Insolvency and Bankruptcy Code. He had said he wanted to get legal opinion on the objections raised by Dalmia Bharat.

After a protracted legal battle at the Kolkata bench of the National Company Law Tribunal (NCLT) over whether or not lenders could consider Ultratech’s revised bid after Dalmia Bharat was declared the successful bidder, it has held by the tribunal that fresh bids made by both companies should be considered in the interest of better realisation for all stakeholders.

Dalmia Bharat moved the appellate tribunal in Delhi, and then the Supreme Court, challenging the Kolkata bench’s verdict but couldn’t win reprieve. The appellate tribunal is hearing Dalmia Bharat’s challenge, but has not imposed injunction on the Kolkata bench’s verdict allowing creditors to consider Ultratech’s revised bid of Rs7,960 crore, which was at least Rs1,000 crore more than Dalmia Bharat’s offer.

Though Dalmia Bharat did not challenge Ultratech’s eligibility to bid under section 29A at the Kolkata bench of NCLT, it has lately claimed that the company was barred from bidding in the first place.

On Friday, for the first time, Ultratech’s revised bid is to be considered by Binani Cement’s creditors, according to two persons, who had received the intimation from the resolution professional. These persons asked not to be identified.

Friday’s meeting could potentially kick off a two-way contest between the two suitors, according to a lawyer in Kolkata. Lenders and the resolution professional were looking for a legal sanction to consider Ultratech’s offer which they now have, he said, asking not to be named.

Dalmia Bharat has said it will move the apex court again if it failed to secure satisfactory orders at the appellate tribunal.

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