RP allows representation of Binani's operational creditors

The Resolution Professional of the Binani Committee of Creditors (CoC) has allowed representation of the operational creditors of Binani Cement, despite no provision of the same under existing norms.

Operational creditors are allowed if their exposure is at least 10 per cent of the debt, which is not the case for Binani Cement.

"Giving regard to the spirit of the May 2 direction of the Kolkata bench of the NCLT, the operational creditors who have filed applications before the NCLT are invited to appoint a representative who will attend the 16th CoC meeting," the RP's notice for the meeting said.

The meeting of the CoC has now been rescheduled to May 10 from May 9, in order to accommodate all parties.

The operational creditors had claimed that dues are over Rs 700 crore.

The RP had erroneously verified dues as Rs 460 crore, of which Dalmia Bharat had offered to pay only Rs 151 crore in their resolution plan, one of the operational creditors said.

Agenda matters for discussion in the meeting include the list of creditors prepared by the RP, note of the directions of the NCLT order and the revised offer, along with the resolution plan of Ultratech Cement.

UltraTech has already submitted its revised offer with the RP, but the exact bid value was still not known.

The Kolkata bench of the National Company Law Tribunal (NCLT) had on May 2 directed the CoC of Binani Cement to consider the revised bid of UltraTech Cement, which is about Rs 1,021 crore more than that of the Dalmia consortium.

One of UltraTech's counsel, during a hearing, had said the company will increase the bid by Rs 500 crore if Dalmia Bharat matches the offer.

The CoC had earlier accepted the resolution of Dalmia Bharat by a clear majority.

Meanwhile, Dalmia Bharat has filed a petition in the Supreme Court against NCLT and the The National Company Law Appellate Tribunal (NCLAT) against the tribunal's directive, legal sources said.

Hearing on the matter is likely to take place on Thursday.

Queries sent to the company in this regard did not elicit response at the time of writing the report.

Dalmia Bharat's arm Rajputana Properties had approached the appellate body of the NCLT on May 4 to obtain a stay on the NCLT order.

The NCLAT, however, did not stay the tribunal's order and allowed the CoC to proceed with its meetings.

The next NCLAT hearing on Dalmia Bharat's plea is on May 22.