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Insolvency resolution: Binani's operational creditors move Supreme Court

Under the current framework of IBC, operational creditors are not a part of the Committee of Creditors and do not enjoy voting rights

Avishek Rakshit  |  Kolkata 

Binani cement

Ten of Cement, led by Swastik Coal Corporation, has filed an application with the Supreme Court to obtain an interim stay on Dalmia Bharat-led consortium’s resolution plan, which is up for the National Company Law Tribunal’s (NCLT’s) approval. Additionally, it also wants itself to be treated on par with financial lenders.

On Friday, the legal counsel who will represent the 10 operational creditors, will voice his support in favour of Industries’ appeal for an out-of-court settlement in the Supreme Court.

In the petition, the have also sought permission to participate in the meeting of the (CoC) and participate in the voting process.

Under the current framework of the Insolvency and Bankruptcy Code (IBC), are not a part of the and do not enjoy voting rights.

Their appeal is based on the allegation that against a Rs 7 billion claim, they are getting Rs 5.03 billion under the Dalmia Bharat-led consortium’s plan, which has been approved by the Committee of Creditors, and the resolution professional (RP) did not tell them the final amount.

Swastik Coal Corporation owner Hitesh Bindal, whose is claiming around Rs 885.9 million, expects the Supreme Court to pass an “extraordinary judgement” during the hearing in the Cement case. “We have approached the Supreme Court so that our interest is also taken care of and operational creditors get back their total dues. We are raising objections to the Dalmia Bharat plan as it is unfair to us,” he said.

The operational creditors are supporting the Rs 76 billion out-of-court settlement by UltraTech Cement-backed Binani Industries, which promises all lenders full repayment of their claims.

In case the approves Dalmia Bharat’s proposal, Bindal will get 5 per cent of Rs 885.9 million; but in case Binani Industries’ proposal gets through, Bindal will get the entire amount.

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First Published: Tue, April 10 2018. 22:24 IST
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