MUMBAI: The insolvency and resolution process of Binani Cement Ltd, which evolved into a two-horse race, found itself in fresh legal trouble with the resolution professional and suppliers moving the NCLT.
This comes even as Binani is considering moving the NCLT itself, seeking termination of the insolvency process as it found a new buyer in UltraTech Cement, which entered into an agreement to acquire its cement assets for Rs 7,266 crore. While the resolution professional Vijaykumar V Iyer moved the tribunal alleging fraudulent transactions of Rs 2,400 crore involving Binani Cement as ‘undervalued, extortionate and preferential,’ eight suppliers filed an intervention petition against the firm’s insolvency resolution professional and its Committee of Creditors (CoC).
On its part, Binani clarified that the deal was undervalued by the resolution professional and that its cement assets alone are worth Rs 17,294 crore.The suppliers group comprising micro, small and medium enterprises like Sree Khemisati Polysacks, Balaji Roadline, and Vipul Marketing, supplied transportation, packaging and other materials to Binani and are claiming dues worth Rs 37 crore. Being the operational creditors, they want their claims to be treated on par with other creditors.
It may be noted that the CoC, with 99.5 per cent votes in favour of Dalmia Bharat gave its approval for the acquisition of Binani Cement for Rs 6,700 crore and provided a performance bank guarantee of 10 per cent upfront payment to the financial creditors. Then came UltraTech’s Rs 7,266 crore offer, which is subject to necessary approvals.
The consortium led by Dalmia Cements was in the race to acquire assets of Binani, which could have given it access to northern markets. For UltraTech, the acquisition will further strengthen its presence.
The unusual twist
A resolution professional alleges fraud by Binani Cement promoters; submits application to NCLT’s Kolkata bench
Binani Cement claims it hasn’t received any copy of the application