Binani Cement sale: UltraTech back in the race after hiccup
UltraTech’s revised bid needs to be submitted within three days to the resolution professional for consideration of the Committee of Creditors (CoC) and the whole process, which might involve getting fresh bid from Dalmia, has to be completed by June 24, about two months extension from the statutory 270-days deadline for insolvency resolution.
Debt-laden Binani Cement will see bidding war start all over again. The National Company Law Tribunal (NCLT) on Wednesday allowed UltraTech to join the fray and asked the creditors to consider Kumar Mangalam Birla group-owned cement player UltraTech’s revised bid.
UltraTech’s revised bid needs to be submitted within three days to the resolution professional for consideration of the Committee of Creditors (CoC) and the whole process, which might involve getting fresh bid from Dalmia, has to be completed by June 24, about two months extension from the statutory 270-days deadline for insolvency resolution.
Despite UltraTech’s revised unsolicitated bid of Rs 7,960 crore has been higher than Dalmia Bharat’s Rs 6,590 crore which was earlier accepted by the Committe of Creditors, there is no surety that the deal will be sealed by the former. This is because NCLT has also provided an opportunity to Dalmia led consortium, Rajputana Properties, to revise its bid.
In the Binani Cement case, UltraTech revised its bid much after Dalmia had submitted its bid within the prescribed deadline, which was then accepted as the best offer.
Watch this Zee Business video here:
The principal being followed now is maximisation of the bid value which benefits all the stakeholders involved. But this, hasn’t pleased Dalmia Bharat which might now explore legal remedy.
“In our view, any revised offer from an unsuccessful resolution applicant outside the resolution process cannot become a basis of setting aside the decision of the CoC. We have strong conviction that we have followed the law as per the due process.” a Dalmia Bharat spokesperson said.
The operational creditors who prefer UltraTech’s bid are elated. “The NCLT order serves a clear guideline to the RPs and the CoC to look beyond the financial creditors and discharge their fiduciary role of maximising the recovery for all creditors,” Rajesh Tibrewal, spokesperson of operational creditors said.
By Sumit Moitra, DNA India
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
12:32 PM IST