The Committee of Creditors (CoC) of Binani Cement on Monday voted in favour of UltraTech’s Rs 79.60 billion offer.
All 100 per cent votes were cast in UltraTech’s favour since the Aditya Birla Group firm, in its proposal, agreed to take care of all the legitimate claims of all stakeholders, said sources who attended the meeting.
Binani Cement is undergoing insolvency proceedings.
The CoC will issue a Letter of Intent to UltraTech on Tuesday and has informed the resolution professional about its decision. The plan will be sent to the Kolkata Bench of the National Company Law Tribunal (NCLT) for its approval on Friday, sources said.
The lenders met in Mumbai and voting took place in person. One of the leading lenders had earlier asked the CoC to be physically present at the venue for the voting process.
“There is a hearing on this case on June 4 and by then we feel that a successful bidder had to be selected,” one of the leading lenders said.
Sources in the CoC who participated in the voting said the committee overrode all its previous decision when it selected the offer from the Dalmia Bharat-led consortium as the successful bidder. After Monday’s decision, UltraTech became the highest (H1) bidder replacing the Rajputana Properties-Dalmia Bharat led consortium.
Initially, after the CoC had approved Dalmia Bharat’s proposal and placed it before the Kolkata Bench of the NCLT, UltraTech and other stakeholders had contested it. The tribunal then ordered the CoC to consider the Aditya Birla group firm’s proposal, and submit a resolution plan by June 24. In case the NCLT approves UltraTech’s offer, Dalmia Bharat will contest the decision in the National Company Law Appellate Tribunal (NCLAT) and move the Supreme Court as well.
The Supreme Court on Monday admitted the Dalmia Bharat-led consortium’s allegation that UltraTech was ineligible to bid under Section 29(A) of the Insolvency and Bankruptcy Code (IBC). Hearing on the matter is slated for early next week.
Lenders who passed UltraTech’s plan said despite the CoC’s decision, they will abide by the decision of the apex court.
"It is clear from the order that the one offering the highest amount will be selected as the H1 bidder. We had asked Dalmia Bharat to match the offer from UltraTech, but it did not within the stipulated time," a lender said.