Exim Bank moves NCLT against Binani

The resolution professional, Binani Cement and eight MSMEs have knocked on the doors of NCLT so far for filing separate petitions.

Published: 23rd March 2018 05:05 AM  |   Last Updated: 23rd March 2018 05:38 AM   |  A+A-

By Express News Service

MUMBAI: Yet another creditor moved the National Company Law Tribunal (NCLT) in the ongoing insolvency and resolution process of Binani Cement Ltd. Joining the list of creditors moving the tribunal, Exim Bank, one of the unsecured lenders to the bankrupt Binani Cement, filed its petition in the Kolkata bench seeking to maximise value for itself from the resolution process.

The resolution professional, Binani Cement and eight MSMEs have knocked on the doors of NCLT so far for filing separate petitions.

The Committee of Creditors chose the Dalmia Cements-led consortium as the winning bidder for Binani Cements, but the latter sought the tribunal’s permission to terminate the resolution process as it signed a buyout agreement with UltraTech Cements for Rs 7,200 crore.

According to sources, Dalmia Cement’s proposal will help recover only Rs 4,500 crore, forcing lenders to take a steep haircut of Rs 1,700 crore. Its resolution plan also makes up for full repayment to all financial creditors except Exim Bank and SBI Hong Kong.

During voting on the consortium’s proposal, Exim Bank had voted in its favour, but sources said it was done after protest as they were taking a haircut. Exim Bank’s exposure to Binani Cement is estimated to be in excess of Rs 600 crore and SBI Hong Kong branch’s to the tune of Rs 33 crore.

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