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Lenders to consider Binani Cement's offer of out -of -court settlement

Team SoOLEGAL 3 Apr 2018 8:36pm

Lenders to consider Binani Cement's offer of out -of -court settlement

Kolkata:As Binani Industries’ parent moved an application expressing desire to go for out of court settlement with the committee of the creditors, the Kolkata Bench of National Company Law Tribunal (NCLT) adjourned the hearing on Binani Cement insolvency proceedings to April 9 .This will allow the committee of creditors time to consider parent  application for a settlement outside the tribunal.

Only  in its last hearing held on March 27,the bench had observed that the application filed by Binani Industries — offering full repayment of dues to all creditors of its cement arm following a separate deal with UltraTech Cement — was in the “larger interest of all creditors”.

However the lawyer representing the lenders’ panel told NCLT that the company had not provided details of the repayment proposal. The lawyer for lenders said they would be in the position to say anything only if they receive copy of the NCLT order which they have not received so far because of number of public holidays.To this NCLT asked if you get a copy, would you consider, on this  the counsel sought time to consider the application.

 “Now that the ball is back in CoC’s court, we hope the issue will soon get resolved and we will not have to fight long for our rightful dues,” Binani Operational Creditors Forum (BOCF) spokesperson Hitesh Bindal said after hearing.

According to the agreement between Binani Industries and UltraTech, for 98.43%  of its share Binani will receive Rs 7,266 crore from Ultratech. Now this deal is outside the ongoing resolution process in which Dalmia Bharat-led consortium was selected as winning bidder by CoC and Ultratech's bid was rejected.

 However there is a new twist with Binani signing an agreement with UltraTech and money being offered by Ultratech can help the company pay back the money it owes to group of creditors.



Tagged: NCLT   Binani Cement   Ultratech  
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