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As many as 70 operational creditors of Binani Cement have formed a forum to oppose Aditya Birla Group company UltraTech Cement’s ₹150-crore offer, stating that the claim amount is at least four times higher than the amount offered. The operational creditors — a clutch of micro, small and medium enterprises (MSMEs) — peg the claim amount at ₹700 crore.
The new forum — Binani Operational Creditors’ Forum (BOCF) — intends to take up the issue with the National Company Law Tribunal (NCLT) when it meets on Tuesday in Kolkata. The operational creditors, a clutch of MSMEs, had supplied coal and packaging bags and provided transportation and sales support to Binani Cement.
Binani Cement has more than 3,000 operational creditors, and these 70 entities claim that the company owes nearly 80 per cent of the total dues to them. BOCF is also in talks with others to bring them into the fold.
A fight for dues
“The forum’s basic idea is that we will go to every extent to ensure the maximisation of the operational creditors’ value and we get our due. We have to fight for our rights, otherwise one NCLT filing will have a cascading effect on the MSME sector itself,” said Hitesh Bindal, a spokesperson for the forum.
“Being a supplier, if I don’t get my money, I might not be able to pay my suppliers and lenders. This is a larger industry issue as it will result in multiple NCLT filings,” added Bindal, who is a supplier of coal to Binani Cement. The forum has “no intention” of delaying Binani Cement’s debt-resolution proceedings, he said, adding: “We are only seeking our due.”
Earlier, UltraTech Cement pegged the operational creditors’ claim at ₹503 crore, and proposed to pay ₹149.7 crore to them, a 30 per cent payout. This was part of an earlier deal UltraTech had with Binani Industries to acquire a 98.43 per cent stake in the latter’s distressed assets for ₹7,266 crore.
Last week, eight MSMEs had filed an intervention petition against Binani Cement’s Insolvency Resolution Professional (IRP) and its Committee of Creditors (CoC). The petitioners had sought “to secure or ensure that the Corporate Insolvency Resolution Process balances the interest of all operational creditors.”
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