The committee of Creditors of Binani Cement is likely to meet on Wednesday to take a call on UltraTech Cement's revised offer.
The committee of Creditors (CoC) of Binani Cement is likely to meet on Wednesday to take a call on UltraTech Cement’s revised offer. “The lenders have decided to hold a CoC meeting on Wednesday to take a final call on UltraTech’s offer,” a source told FE.
In its order on May 2 on the ongoing resolution process for Binani Cement, the Kolkata bench of the National Company Law Tribunal (NCLT) had asked the resolution professional (RP), Vijaykumar V Iyer, to accept the revised offer of around Rs 7,900 crore from UltraTech Cement within three days.
The bench had also directed the CoC to consider UltraTech’s revised offer along with the resolution plan, bringing it back in the race for acquiring the cement company.
The bench had also offered the Dalmia Bharat-controlled Rajputana Properties (RPPL) a chance to better its offer of Rs 6,930 crore and compete for the asset. Following the NCLT’s direction, RPPL moved the National Company Law Appellate Tribunal (NCLAT) against this order. The appellate tribunal, however, refused to pass any interim stay order. The NCLAT listed the matter for hearing on May 22.
Another source aware of the matter said as per the NCLT’s direction, UltraTech submitted the revised offer last week to Iyer, who has forwarded it to the lenders. The RP was not available for a comment.
UltraTech Cement had improved its offer to around Rs 7,960 crore after submitting an earlier revised bid of over Rs 7,200 crore to the RP on March 8. RPPL’s Rs 6,930-crore bid, which includes infusion of working capital and capex, was declared the highest bid (H1) on February 27.
UltraTech had claimed that the negative points had been wrongly assigned to its bid, making it the H2 and not H1 bidder.
Justices Jinan KR and Madan Balachandra Gosavi observed in the May 2 order: “It is made clear that if both resolution applicants are willing to participate in the bidding process, CoC is expected to allow both resolution applicants in the bidding process” and go with the bidder “best for revival of the corporate debtor as decided by the CoC”.
Binani Cement has a manufacturing capacity of 11.25 million tonne cement per year with integrated plants in India and China, and grinding units in Dubai.