Resolution plan for Binani submitted to NCLT: Dalmia Bharat Group

Dalmia Bharat Group today said its Rs 6,350 crore bid for the debt ridden Binani Cement (BCL) has been submitted by the resolution professional (RP) before the National Company Law Tribunal (NCLT) for approval.

Besides, the group has also submitted a performance bank guarantee (PBG) of 10 per cent of upfront payment of its offer to the financial creditors of BCL, Dalmia Bharat Ltd said in an update filed to the exchanges.

The development comes a day after Aditya Birla Group's UltraTech Cement announced that it would acquire BCL by providing Rs 7,266 crore to its parent company Binani Industries Ltd (BIL).

Rajputana Properties Pvt Ltd (RPPL), a part of Damlia Bharat group, has made a Rs 6,350 crore bid along with 20 per cent equity in BCL.

In its filing today, Dalmia Bharat said a letter of intent was issued to RPPL by the RP of BCL and the same has been accepted by RPPL and delivered to the RP.

"Further, RPPL has also provided a PBG equal to 10 per cent of upfront payment to be made to the financial creditors as per the plan as a term of acceptance in accordance with the terms of the LOI," said Dlamia Bharat group in a regulatory filing.

It added: "The Resolution Professional has since filed the Resolution Plan with the NCLT for its approval thereon".

Yesterday, BIL had said that its board has decided to approach NCLT to terminate the insolvency proceedings commenced against its subsidiary BCL.

"In consideration thereof, upon the termination of the insolvency proceedings of Binani Cements, the company has agreed and concluded in-principal commercial understanding to sell its entire 98.43 per cent shareholding interest in BCL to UltraTech Cements Ltd," BIL said in a regulatory filing.

The development came after the company received the backing from UltraTech Cement to support it and BCL with funds required to pay off dues of the lenders.

UltraTech had said in a statement that BIL - the promoter firm of BCL - approached it for arranging funds to pay-off the lenders.

The company's board had agreed to issue 'comfort letter' to provide Rs 7,266 crore in return for 98.43 per cent stake in Binani Cement.