Binani Cement’s CoC seeks more time to consider settlement offer

Kolkata, April 2 (IANS) Amid ongoing battle for taking over insolvent Binani Cement, its Committee of Creditors (CoC) on Monday sought more time from National Company Law Tribunal's (NCLT) bench here to consider firm's parent company Binani Industries' application for an out of the tribunal settlement.

The NCLT's Kolkata division bench comprising two judges directed the lenders' committee to consider Binani Industries' plea and extended the deadline till April 9.

Binani Industries had submitted an application before the tribunal seeking termination of insolvency proceedings against its cement manufacturing subsidiary and its counsel had said it could pay all its creditors.

The move came after it concluded a commercial understanding with the UltraTech Cement to sell its entire 98.43 per cent stake in its cement manufacturing subsidiary at a consideration of Rs 7,266 crore.

The NCLT bench in its order dated March 27, said: "In the larger interest of all the stake holders, possibility of having a harmonious settlement is to be considered...parties are free to consider it out of tribunal."

Counsel appearing for the CoC on Monday said it could not consider the Binani Industries plea as a copy of the order of the tribunal in this regard was not available.

Asked if the CoC was willing to consider the proposal if they got a copy of the order, counsel replied that the committee needed "more time" because there were so many creditors to be consulted.

During the ongoing insolvency proceedings of Binani Cement, Resolution Professional (RP), Vijaykumar V Iyer, submitted the resolution plan of Dalmia Bharat-controlled Rajputana Properties before the bench as the "highest bidder" to take over the debt-laden company.

Meanwhile, UltraTech Cement had recently informed stock exchanges that it obtained the Competition Commission of India's (CCI) approval on its bid for the debt-laden company and the company claimed the CCI clearance validates its contention that "they were wrongly and unjustifiably rated H2 instead of H1".

Rejecting this, Dalmia Cement (Bharat) Limited's Group CEO Mahendra Singhi had claimed: "The reasons cited by the unsuccessful bidder for its failed bid, in stock exchange filings and press interviews, are misleading. We have made the highest financial bid and had also obtained the highest score in the evaluation."

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)