Plea to NCLT to resolve Binani Cement dispute at the earliest
23 Mar 2018
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The National Company Law Tribunal (NCLT), Kolkata bench, has been asked to ensure quick resolution of a dispute by lenders to Binani Cement, who have also sought consideration of a resolution plan by Dalmia Bharat Cement (DBC).
A senior executive of DBC said that the resolution plan has been approved by creditors and it has already furnished performance guarantee and is on track to acquire Binani.
The NCLT has directed Binani Cement to submit the criteria and procedure for selection of the bidder, minutes of meetings, and a timeline of proposals and decisions taken. A consortium led by Dalmia Bharat Cement had won the bid for Binani Cement, till Adity Birla Group company UltraTech raised its bid (See: UltraTech makes fresh Rs7,266 offer; Binani appears to favour it).
The judge also sought details of the proceedings and outcome of the 14 March meeting when a committee of creditors approved the joint resolution plan of Dalmia Bharat Cement and Bain Capital’s Resurgent India Fund.
The resolution process for Binani Cement ends within a month and as per the Insolvency and Bankruptcy Code, no extension can be provided.
Binani Industries, the parent company of Binani Cement, had earlier moved the NCLT to take the company out of the insolvency proceedings, after a bilateral agreement was signed with UltraTech Cement relating to the selling of the controlling stake for Rs7,000 crore.
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