Binani Cements promoter Binani Industries Limited (BIL), has decided to seek termination of its insolvency proceedings at the the National Company Law Tribunal (NCLT), after UltraTech Cement agreed to buy out the promoters’ stake in Binani Cement for ₹7,266 crore.
This development comes after the Committee of Creditors approved Dalmia Bharat’s ₹6,700-crore bid to buy Binani Cement last week. Sameer A. Kaji, advisor to Binani Industries, said, “The idea of IBC is to maximise value for all stakeholders. The NCLT has powers to keep the corporate debtor out of the IBC process, if all liabilities are paid. UltraTech has given us letter of comfort of ₹7,266 crore to buy Binani Cement, based upon which we are seeking termination of insolvency proceedings at NCLT.” Asked if the proposal could go through with the matter pending with the NCLT, Atul Daga, ED & CFO, UltraTech Cements, said, “If you have a house that’s mortgaged with a bank, you are still the owner and can sell it and repay the loan.”
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’Binani sought support’
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In a statement, BIL said, “To terminate the IBC proceedings, Binani Cement will be required to pay off lenders’ debts and other liabilities as admitted in the IBC proceedings.
“To add credibility to its application, BIL had approached UltraTech Cement Ltd. to support ... with the funds required to pay off the amount determined as due.”
It added “upon the termination of the insolvency proceedings of Binani Cement, the company had agreed to... sell its 98.43% shareholding... to UltraTech.”
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