The National Company Law Tribunal (NCLT) has approved the resolution plan submitted jointly by Himadri Speciality Chemical and Dalmia Bharat Refractories to acquire B K Birla group firm Birla Tyres under the corporate insolvency resolution process (CIRP).
“We would like to inform you that NCLT, Kolkata Bench today approved the resolution plan,” Birla Tyres said in a stock exchange filing. The resolution plan was earlier approved by the creditors to the tyre manufacturer.“...this is to inform you that National Company Law Tribunal, Kolkata
Bench has now approved verbally the resolution plan submitted jointly by the company and Dalmia Bharat Refractories Limited for acquisition of Birla Tyres Limited under the corporate insolvency resolution process (CIRP) in terms of the Insolvency and Bankruptcy Code, 2016,” Himadri Speciality Chemical informed in a separate stock exchange filing.
Birla Tyres was first founded in 1991 as a subsidiary of Kesoram Industries. The company was later declared as a separate entity after it was separated from its parent firm in 2019.
Axis Bank, State Bank of India, ICICI Bank and Yes Bank, among others, were major creditors to the tyre maker. The total debt of the company was over ₹1100 crore.
Notably, Birla Tyres had a plan to demerge its passenger car radial business into a separate company, Birla Tyre Radials Limited.