NEW DELHI: The chances of Kumar Mangalam Birla-led UltraTech Cement acquiring the bankrupt Binani Cement hit a fresh roadblock on Friday as the Supreme Court refused to allow an out-of-court settlement for Binani Cement.
Post Friday’s development, Binani Industries said that it has withdrawn its appeal to the Supreme Court and will go back to the Kolkata bench of the National Company Law Tribunal, which will have a hearing on April 16.
Meanwhile, Dalmia Bharat Group, an aggrieved party in the case, reportedly said they are happy that the SC has not terminated the Insolvency and Bankruptcy Code process, which was requested by the defaulting promoter and the losing bidder.
Ultratech’s bid, which was earlier rejected by lenders of Binani cement, struck an out-of-court deal with Binani Industries and had moved to Supreme Court to get the insolvency proceedings terminated.
It had offered to repay in full the outstanding amounts to lenders and operational creditors, which, in return, would help it to acquire 98.43 per cent stake in Binani Cements, which owes Rs 7,000 crore to financial and operational creditors.
Dalmia Bharat had emerged as the highest bidder at Rs 6,350 crore for Binani Cements under the insolvency proceedings by the committee of creditors.