Bi­nani ce­ment RP re­jects banks claims

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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.

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