The battle for Binani Cement took another turn on Tuesday with Dalmia Bharat moving the Supreme Court.
The battle for Binani Cement took another turn on Tuesday with Dalmia Bharat moving the Supreme Court (SC), asking it to overturn the National Company Law Tribunal’s (NCLT) order which allowed UltraTech’s revised offer to be considered. The appeal is expected to be mentioned in the apex court on Wednesday and heard on Thursday, sources said.
Last week the National Company Law Appellate Tribunal (NCLAT) had refused to stay an order by NCLT, which allowed Ultratech’s bid to be considered and had listed the case for hearing on May 22. Meanwhile, the committee of creditors (CoC) is scheduled to meet on May 10 to “take note of the directions of the order of the NCLT, Kolkata dated May 2, 2018” and “to consider the revised offer along with the resolution plan of UltraTech Cement”. The SC directive could have a bearing on the lender’s decision to consider Ultratech’s bid for the cement company.
While the NCLT had allowed Ultratech’s revised bid to be considered, it had also offered Dalmia Bharat-controlled Rajputana Properties (RPPL) a chance to better its offer of Rs 6,930 crore.
This bid, which includes infusion of working capital and capex, had been declared the highest bid (H1) on February 27. UltraTech Cement had improved its offer to `7,900 crore, after submitting an earlier revised bid of over Rs 7,200 crore to the RP, Vijaykumar V Iyer, on March 8. UltraTech had claimed that negative points had been wrongly assigned to its bid, making it the H2 and not H1 bidder.
In FY17, Binani Cement had posted a net loss of `348 crore on revenues of Rs 1,527 crore, according to data from Capitaline.
The Supreme Court had, on April 13, expressed its unwillingness to interfere in the Insolvency and Bankruptcy Code (IBC) proceedings, following which Binani Industries (BIL) withdrew its appeal for an out-of-court settlement for the sale of its subsidiary Binani Cement.The judges were upset with BIL’s attempt to withdraw the sale of Binani Cement from the purview of the IBC.
BIL’s appeal in the SC had been prompted by an offer it received from UltraTech Cement to buy a 98.43% stake in Binani Cement for Rs 7,266 crore provided the resolution process under the IBC was terminated. Binani Cement has a manufacturing capacity of 11.25 million tonnes of cement per year with integrated plants in India and China, and grinding units in Dubai. As per details on Binani Cement’s website, financial creditors of the company had claimed `6,470.26 crore, while the NCLT had admitted claims worth `6,469.36 crore.