New Delhi: Dalmia Cement is confident that its Rs6,350 crore offer to buy Binani Cements Ltd (BCL) will be approved by the NCLT on the back of NCLAT directions to proceed the insolvency resolution as per the IBC, according to a top company official.
Last week, the committee of creditors (CoC) of Binani Cement had decided to stick with the offer from Dalmia Bharat Cement for the debt-ridden firm’s sale under the Insolvency and Bankruptcy Code (IBC).
Moreover, the National Company Law Appellate Tribunal (NCLAT) had also asked the adjudicating authority, which is National Company Law Tribunal (NCLT), to proceed with the resolution process of Binani Cement as per the IBC.
“As far as we are concerned, we have a clear cut direction from NCLAT to do the process as per the law and in a timebound manner. That’s why we are confident that NCLT will be approving our resolution plan on April 9 and that should pave the way for resolving this asset," Dalmia Cement (Bharat) Ltd group CEO Mahendra Singhi told PTI.
On 5 April, while posting the matter for further hearing on 19 April, the NCLAT had stated that “pendency of the appeal will not come in the way of the adjudicating authority to proceed with the corporate insolvency resolution process in accordance with the provisions of I&B Code, 2016".
NCLAT chairperson Justice S.J. Mukhopadhaya had further observed that the NCLT “may pass order uninfluenced by the impugned order" of 27 March it had passed and NCLAT’s order of 3 April, 2018. “It is great development as the whole process of resolution will not get delayed," Singhi said, adding the case would also show the world that India can bring resolution of stressed assets in a time-bound manner.
Last Tuesday, the NCLAT had given Binani Industries and CoC the ‘liberty’ to reach settlement after the company had submitted before it stating that it had “offered better amount which is approximately 100% of the dues to the committee of creditors".
On 27 March, the Kolkata bench of NCLT had stated that “in the larger interest of all stakeholders, possibility of having a harmonious settlement is to be considered, parties are free to consider it out of Tribunal". The next hearing of the matter will take place at the Kolkata bench of the NCLT on 9 April.
Last month, Dalmia Cement had said its Rs6,350 crore bid to buy Binani Cements Ltd (BCL) through its subsidiary Rajputana Properties was accepted by the lenders. It had also offered 20% equity in Binani to the lenders. However, later, UltraTech Cement entered into an agreement with BIL to buy 98.43% stake in BCL. It had also agreed to issue a comfort letter to provide Rs7,266 crore to Binani Industries Ltd for ending insolvency proceedings against Binani Cement.
Singhi said such a development would have been a breach of contract. “The offer process has ended and we have already given bank guarantee of around Rs630 crore. The whole purpose was to have a transparent process," he said.
Amid the developments, last week Binani Industries Ltd stated that it had filed application for termination of insolvency resolution process of its debt-ridden subsidiary Binani Cement Ltd (BCL).