Binani Industries offers to pay all dues of Binani Cement
Binani Industries tells NCLAT that it is ready to pay up all the dues of Binani Cement to its financial and operational creditors in two weeks
New Delhi: Binani Industries Ltd, the parent of debt-ridden Binani Cement Ltd, told the National Company Law Appellate Tribunal (NCLAT) on Wednesday that it was ready to pay up all the dues of its subsidiary to its financial and operational creditors in two weeks, if the tribunal so permitted.
Binani Industries holds over 98% stake in Binani Cement, which is currently undergoing bankruptcy resolution. Dalmia Bharat Ltd and UltraTech Cement Ltd are both vying to settle its debt and take control of the beleaguered company.
The Binani Industries lawyer submitted that once permission to pay up the debt was granted, the entire corporate insolvency resolution process would become infructuous since there won't be any unpaid debt left.
On 15 May, an NCLAT bench headed by Justice S. J. Mukhopadhyay issued notice to the Resolution Professional and Committee of Creditors (CoC) for Binani Cement. It also allowed one of the resolution applicants in the insolvency process—Dalmia-Bharat controlled Rajputana Properties Pvt. Ltd—to file an intervention application. The other resolution applicant is UltraTech Cement.
The CoC is scheduled to meet on 18 February.
In an interim measure on 4 May, the NCLAT had upheld an order of NCLT’s Kolkata bench in an appeal moved by Rajputana Properties by allowing the resolution professional and CoC for Binani Cement to consider the revised resolution plan submitted by UltraTech, while offering Rajputana Properties an opportunity to revise its resolution plan of Rs6,930 crore.
UltraTech Cement’s revised offer stood at Rs7,900 crore, against its earlier bid of over Rs7,200 crore.
Binani Cement, which was admitted by NCLT in July 2017 for resolution under the Insolvency and Bankruptcy Code, owes over Rs6,500 crore to its lenders.
The matter would be next heard on 22 May.