A merry X-mas for Binani’s Operational Creditors

Rajesh Kurup Mumbai | Updated on November 20, 2018

FILE PHOTO: The OCs of Binani Cement are a clutch of MSMEs that include suppliers of coal, gunny bags, transporters and companies that provided sales support among others   -  Getty Images/iStockphoto

For the nearly 3,000-odd operational creditors (OCs) of Binani Cement, this Christmas would be the best ever as they expect to be paid about ₹450 crore in the next 30 days, if not earlier.

This follows the Supreme Court order on Monday that approved UltraTech Cement’s revised offer to acquire Binani Cement.

The OCs of Binani Cement — a clutch of micro, small and medium enterprises (MSMEs) — include suppliers of coal, gunny bags, transporters and companies that provided sales support among others.

The company owes MSMEs as low as ₹10,000 to as high as ₹25 crore. “According to rules, the OCs have to be paid within a maximum of 30 days, but I believe that UltraTech will pay the dues much before as soon as the company takes over Binani Cement. The deck is now clear for the plan to be implemented,” Dhaval Vussonji of law firm Dhaval Vussonji and Associates told BusinessLine.

Vussonji represented the OCs at National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT) and also in the Supreme Court.

Legally, Dalmia Cement’s Rajputana Properties has an option to seek a revision of the order.

Earlier in March, as many as 70 OCs of Binani Cement formed a forum — Binani Operational Creditors’ Forum (BOCF) — to ensure the maximisation of their value and get their dues, and even moved NCLT’s Kolkata bench.

Eight MSMEs — Shri Khemisati Polysacks, Balaji Roadlines, Vipul Marketing, Shama Enterprise, Ganpati Plastfab, Sai Shraddha Corp, Jay Enterprise and Shree Ganpatlal Onkarlal Agarwal — had sought a say in the tribunal’s proceedings also.

“Things will be much clearer after the Committee of Creditors’ meeting to finalise a date and execute the order. However, the methodology of the payment may differ as certain OCs have already agreed to continue the business cycle with the company, keeping the outstanding as an investment with the firm,” Hitesh Bindal, a spokesperson for the forum, said.

“For many, it would be an instant payment. That might clear the small vendors’ dues immediately, while for large OCs they might put this condition on mutual understanding,” he added.

Published on November 20, 2018

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