Binani Cement moratorium to continue till further orders

The Kolkata Bench of the NCLT today extended the moratorium on Binani Cement and asked the Resolution Professional of the bankrupt firm to continue till further orders.

"Since several applications in regard to the question of approval of resolution plan are under consideration, we hearby direct resolution professional to continue the management of the corporate debtor until further orders," the bench said in its order.

The 270-day time frame, as stipulated in the Insolvency and Bankruptcy Code (IBC), gets over for Binani Cement tomorrow.

A company spokesperson said the deadline will not come in the way of pending hearings, while Dalmia Bharat, the company chosen by the lenders as the top bidder by the Committee of Creditors, declined to comment on the matter.

The next hearing is on April 23.

The Binani Cement takeover case has generated as many as 14 petitions in the Kolkata bench of NCLT alone, and four others are yet to be heard.

Meanwhile, Dalmia Bharat claimed in their reply to the submission of UltraTech Cement, another potential bidder, that it has been constantly changing its offer, which does not constitute as viable business practice, and needs to be considered as "non-responsive" bid.

UltraTech Cement had yesterday claimed in the tribunal that the resolution plan backed by Dalmia Bharat, could potentially cause a loss of Rs 1,020 crore to the creditors.

It had also proposed an open courtroom auction for the distressed asset, and offered to increase the bid value if Dalmia Bharat were to match the amount.

Dalmia Bharat's subsidiary Rajputana Properties offer is valued at around Rs 6,589 crore.