Binani cement RP rejects banks claims
The resolution professional (RP) for Binani Cement has rejected the claims of more than Rs 2,000 crore by IDBI Bank and the Hong Kong branch of State Bank of India, as the money was owed in corporate guarantees and not invoked before the insolvency proceedings had begun. According to the report, the committee of creditors (COC) of Binani Cement, a subsidiary of Binani Industries, will be reconstituted. Meanwhile, Edelweiss Asset Reconstruction Company (ARC), leader of the consortium after buying a large chunk of the debt from banks, had earlier urged the Kolkata bench of the National Company Law Tribunal (NCLT) to reject IDBI Bank’s claim to un-invoked corporate guarantees. In July, the Kolkata bench of the NCLT had admitted an insolvency petition against Binani Cement by Bank of Baroda (BOB) after the company failed to repay a sum of Rs 97 crore. The company owes a consortium of lenders close to Rs 3,042.93 crore. Binani Cement reported a net loss of Rs 289 crore in 2015-16 on Rs 1,524 crore in revenues, primarily owing to an interest outgo of Rs 368 crore.