UltraTech Cement, an Aditya Birla group company, has taken over 3B Binani Glassfibre Sarl Luxembourg, a subsidiary of Binani Industries by taking over the pledged shares of the company from Bank of Baroda London.
Ultratech Nathdwara Cement, a subsidiary of UltraTech Cement, revoked the pledged shares of 3B Binani Glassfibre Sarl Luxembourg with Bank of Baroda London, the Security Agent and directed the bank to transfer 3B shares UltraTech.
Details as to value and adjustment against companies liability as security provider will be communicated after negotiation with UltraTech Nathdwara Cement and the lender, said Binani Industries in a statement on Saturday.
The shares of 3B had already been write off in the books of Binani Industries and stands at ₹78 crore as on the last Audited Balance Sheet as on March 31, 2020. The lender has also taken over the management and replaced the company’s representatives on the board of 3B. Consequently, 3B has ceased to be a subsidiary, said Binani Industries.
In 2012, Binani Cement had given a corporate guarantee to raise ₹1,600 crore from IDBI Bank for acquiring 3B Binani Glassfibre. As part of the insolvency process, UltraTech cleared the IDBI Bank loan in full and taken over the loan portfolio. The fibre-glass plant later defaulted on loan availed from Bank of Baroda London which invoked the pledged share. Following this, UltraTech Cement repaid the debt and directed the bank to transfer the share to it.