SUPREME COURT TO HEAR BINANI CEMENT’S PLEA FOR OUTOFCOURT DEAL

Binani Industries Ltd moved the Supreme Court on Monday seeking permission for an out-of-court settlement and end insolvency proceedings against its debt ridden subsidiary, Binani Cement Ltd.

The company’s lenders have asked for necessary permissions to be obtained before they proceed with the settlement.

The matter was mentioned before a bench headed by Chief Justice Dipak Misra, who said that it will be taken up for hearing on April 13.

While seeking an end the resolution process, Binani Industries said that it had struck a deal with UltraTech Cement Ltd for ₹7,266 crore. UltraTech was one of the initial bidders in the resolution process. The total liability of Binani Cement Ltd stands at ₹7,290 crore including the liability of ₹4,049 crore towards secured lenders, it was stated.

It was claimed that the original promoters of UltraTech had mobilised sufficient funds to clear off all the outstanding claims against lenders/financial creditors resulting which Binani Cement would be restored to its full financial health.

Last week, the committee of creditors (CoC) of Binani Cement had decided to stick with the offer of ₹6,350 crore to buy Dalmia Bharat Cement for the debt-ridden firm’s sale under the Insolvency and Bankruptcy Code (IBC), 2016.

Moreover, the National Company Law Appellate Tribunal (NCLAT) had also asked the adjudicating authority, which is the National Company Law Tribunal (NCLT), to proceed with the resolution process of Binani Cement as per the IBC.