Binani files plea to terminate insolvency proceedings of its cement unit

Binani Industries Ltd today said it has filed application for termination of insolvency resolution process of its debt-ridden subsidiary Binani Cement Ltd (BCL).

Binani Industries Ltd (BIL) has received an offer from the Aditya Birla group firm UltraTech to transfer its 98.43 per cent stake in BCL for Rs 72 billion.

However, the deal was subject to ending the insolvency proceedings against BCL, whose Credit of Creditors (CoC) led by Bank of Baroda has approved Rs 63 billion bid from Dalmia Bharat group's wholly-owned subsidiary, Rajputana Properties Ltd.

"Binani Industries Ltd has filed an application for termination of the company insolvency and resolution proceedings (CIRP) of its subsidiary Binani Cements Ltd and the matter is sub-judice," said BIL in a regulatory filing without naming the forum, where it has approached.

It further added: "We will keep the exchanges informed as soon as a final decision of other reportable event occurs."

Meanwhile, today, Rajputana Properties, moved the National Company Law Appellate Tribunal (NCLAT) seeking stay of the settlement process considered by BCL's CoC.

A two-judge bench headed by Justice S J Mukhopadhaya issued notice to BIL; however, it refused to stay the settlement process.

Earlier, on March 3, the NCLAT had granted "liberty to the parties to reach settlement".

Dalmia Bharat group's offer to pay Rs 63 billion for Binani Cement was selected by CoC of the company.

However, later, UltraTech Cement entered into an agreement with BIL to buy 98.43 per cent stake in BCL. It had also agreed to issue a comfort letter to provide Rs 72 billion to Binani Industries Ltd for ending insolvency proceedings against Binani Cement.

All the parties are presently entangled in litigations before the Kolkata bench of NCLT and NCLAT.