SC refuses out-of-court settlement for Binani Cement

Binani Industries will now argue the settlement plea in the National Company Law Tribunal.

File photo: Kumar Mangalam Birla, Chairman, Ultra Tech Cement, addressing a press conference in Mumbai on Sepetmber 11, 2013.

In a major setback to the Kumar Mangalam Birla-led UltraTech Cement, the Supreme Court on Friday refused to allow an out-of-court settlement for bankrupt Binani Cement.

Binani Industries, the parent of Binani Cement had reached an out of court deal with the Aditya Birla Group firm to sell Binani Cements for Rs.7,266 crore and approached the court seeking its approval.

This was inspite of Bharat Dalmia emerging as the highest bidder for Binani Cements under the insolvency proceedings by the committee of creditors, offering Rs.6350 crore for the bankrupt cement firm. Binani Industries will now argue the settlement plea in the National Company Law Tribunal (NCLT).

Binani Cements owes Rs.7000 crore to financial and operational creditors.

The share value of Dalmia Bharat was up 1% at Rs.2820 in morning trade, while that of Binani Industries was down 4% at Rs.97.5. UltraTech Cement was trading flat at Rs.3780.25.