UltraTech’s proposal gets favourable Binani CoC votes:Insolvency Resolution

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Sources that attended the meeting said that since UltraTech is taking care of all the legitimate claims of all the stakeholders, its proposal received 100 percent consent.

The Committee of Creditors (CoC) of Binani Cement on Monday voted in favor of the Rs 79.60 billion offer from UltraTech Cement for the takeover of the aforesaid company currently undergoing insolvency proceedings.

Image Credits:economictimes.indiatimes.com

As the next step, the CoC will submit its plan to the resolution professional and in turn, the offer will be submitted to the NCLT.

“No Letter of Intent needs to be issued and hence the proposal can be submitted directly to NCLT”, a lender said.

The lenders met in Mumbai and voting in person took place. One of the leading lenders had earlier asked the CoC to be physically present at the venue for the voting process.

Sources in the CoC, who participated in the voting said that it overrides its previous decision when it selected the offer from the Dalmia Bharat led consortium as the successful bidder. Hence, as per this decision, UltraTech becomes the H1 bidder thereby replacing Rajputana Properties – the Dalmia Bharat led consortium.

Image Credits:business-standard.com

In the previous instance, after the CoC had approved Dalmia Bharat’s proposal and placed the proposal to the Kolkata bench of NCLT, UltraTech and several other stakeholders contested it. In turn, the Tribunal had ordered the CoC to consider the Aditya Birla Group company’s proposal and select a resolution plan for submission latest by June 24.

Sources in Dalmia Bharat said that in case the NCLT approves the offer from UltraTech, it will contest the decision in the Appellate Tribunal and may also move the Supreme Court.

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On the other hand, on the same day, the Supreme Court has admitted Dalmia Bharat led consortium’s allegation that UltraTech is ineligible to bid under Section 29(A) of the IBC. The hearing on the matter is slated early next week.

Lenders who passed UltraTech’s plan and had claimed it to be eligible, thereby refuting Dalmia Bharat’s claim said that despite the CoC reaching a decision on the bidder, they will abide by the decision of the Supreme Court.

Lenders opined that the Tribunal had directed while passing the order, that its actions need to be in accordance with the spirit of the IBC. The Tribunal had also held that the objective of the IBC is the maximization of value.

“It is clear from the order that one who is offering the highest amount will be selected as the H1 bidder. We had asked Dalmia Bharat to match the offer from UltraTech but they didn’t within the stipulated time”, a lender said.

Even as the Dalmia Bharat led consortium has moved the Supreme Court alleging UltraTech Cement to be disqualified to bid for the stressed assets of Binani Cement, the Rs 79.60 billion proposals from UltraTech will be put to vote on Monday by the Committee of Creditors (CoC) of Binani Cement.

Asked about the voting on Monday, one of the leading lenders said, “There is a hearing on this case on June 4 and by then we feel that a successful bidder had to be selected”.For more such news stay tuned with inventiva.co.in.Featured Image Credits:businesstoday.in.

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