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Binani Cement lenders to meet Wednesday, consider out-of-court settlement

Binani Industries had moved the NCLT for termination of insolvency proceedings, after it received a comfort letter from UltraTech Cement of about Rs 72 billion

Press Trust of India  |  Kolkata 

Binani

The lenders' committee of Ltd is slated to meet on Wednesday to explore the possibility of an out-of-court settlement, in line with the observations made by the bench.

A meeting of the has been called on April 4 to consider the order, CoC sources said.

A panel of two-member judges had extended the deadline for the CoC of bankrupt till April 9, to consider a proposal mooted by the Binani promoters for an out-of-court settlement and end proceedings.

"We cannot say anything now. We are reviewing all the aspects," a senior Binani said.

Binani's offer is worth Rs 72.26 billion and promises to cover all secured and unsecured creditors without any haircut in the settlement.

had moved the NCLT for termination of insolvency proceedings, after it received a comfort letter from Cement of about Rs 72 billion.

The CoC had earlier issued a letter of intent to Cement-led consortium, which emerged as the H1 bidder and applied to NCLT for the final nod.

Cement is of the view that once resolution plan is submitted to the NCLT, there is a binding contract with CoC and the party, and thus an out-of-court settlement was not possible.

First Published: Tue, April 03 2018. 19:49 IST
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