Exim moves NCLT for value maximisation from Binani's resolution process

Exim Bank, one of the unsecured lenders to bankrupt Binani Cement, has moved a petition in the Kolkata bench of the National Company Law Tribunal (NCLT), seeking to maximise value for itself from the resolution process.

Sources said the Dalmia Bharat Cement-led consortium’s proposal would help pay the bank only Rs 4.5 billion and another Rs 1.7 billion would be left out, resulting in a haircut.

Dalmia Bharat Cement-Bain Capital’s Resurgent India Fund’s resolution plan makes up for full repayment of all financial creditors, except Exim Bank and SBI Hong Kong, according to the sources. During the committee of creditors’ (CoC's) voting on the consortium’s proposal, Exim Bank had voted in its favour, but sources alleged it was done after protest as they were taking a haircut. SBI Hong Kong, however, didn’t vote in favour.

Sources suggested that Exim Bank’s exposure to Binani Cement was in excess of Rs 6 billion and SBI Hong Kong branch’s exposure was to the tune of Rs 0.33 billion. Atul Daga, chief financial officer at UltraTech Cement, claimed that UltraTech Cement’s resolution plan paid back all financial creditors entirely. Sources said the plan approved by the CoC would result in Exim Bank and SBI Hong Kong branch taking some haircut.

On Tuesday, a group of MSME companies, which are the operational creditors, had filed an intervention petition against the RP, alleging “unfair and unjust” treatment. 

They said their claims against the cement major had gone unheeded.

Counsel for the operational creditors alleged that the plan approved by the CoC  intended to provide for full payment of their claims.

In view of the fact that corporate debtor is being revived and continues as an ongoing concern, there is no reason as to why applicants' (operational creditors) claims are not paid in full, the counsel for the MSME companies argued.