Uncertainty over Binani Cement asset sale will continue till July 10

Suresh P Iyengar Mumbai | Updated on May 22, 2018

Committee of Creditors may decide highest bidder on Thursday

The uncertainty over stressed Binani Cement asset sale will continue till July 10 even as the Committee of Creditors is expected to decide on the highest bidder in their meeting on Thursday.

Hearing a petition filed by Dalmia Bharat consortium on Tuesday, the National Company Law Appellate Tribunal allowed the CoC of Binani Cement to consider the revised bid of ₹7,965 crore placed by UltraTech Cement or that of Dalmi Bharat if it is revised higher than that of UltraTech.

The CoC can place the winning bid for approval before the NCLT, but even then it will be subject to final nod from NCLAT which had posted the next hearing in the case on July 10, said sources.

Even if a cash transfer happens between UltraTech and Binani Cement bankers post the NCLT approval, it can be reversed if the NCLAT rules in favour of Dalmia Bharat, he added.

Last Friday, the CoC gave an ultimatum to Dalmia Bharat, which was earlier declared the highest bidder for Binani Cement asset, to better the bid placed by UltraTech before its next Thursday meeting or give it up. Increasing the bid is unlikely to help Dalmia Bharat as UltraTech Cement will also be given an opportunity to revise its bid further, said sources.

Both the companies will be pitched against another till the bankers extract the maximum value for the asset, he added.

Interestingly, the 270-day moratorium period for the insolvency resolution of Binani Cement ended on April 21 and NCLT directed the resolution professional to continue manage the company.

Under the Insolvency and Bankruptcy Code, if a resolution plan is not approved within this period, the company will go for liquidation.

However, the Tribunal has discretionary powers to extend the deadline or not consider the time taken for litigation within the stipulated period.

Published on May 22, 2018

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