Binani Cement owes banks about of Rs 4,000 crore and the total money it owes to the lenders including unsecured creditors is about Rs 7,000 crore
The committee of creditors (COC) is expected to give all the five bidders of Binani Cement an opportunity to improve their bids. The CoC will ask bidders to give their best bids.
A senior banker told DNA Money that all the five bidders would be asked to give their final bids irrespective of who bid the highest in the first round.
“Since the resolution for Binani Cement was initiated even before the NCLT (National Company Law Tribunal) process was initiated, the CoC has decided to give all the bidders another opportunity to raise their bids before the final bidder is selected. The CoC met on Monday to take a decision on this,” said a person who is closely associated with the development.
As reported by DNA Money, Rakesh Jhunjhunwala and Ramesh Damani of D-Mart are bidding jointly for the company.
The other bidders are Aditya Birla-owned Ultratech, JSW and Ramco Cement (along with private equity fund True North) and Dalmia Cements, which has partnered with billionaire Ajay Piramal.
Binani Cement owes banks about of Rs 4,000 crore and the total money it owes to the lenders including unsecured creditors is about Rs 7,000 crore.
Edelweiss Asset Reconstruction Company, which owns 70% of the debt, is the lead financial creditor and the remaining debt is held by State Bank of India (SBI), Bank of Baroda, Bank of India and IDBI Bank.
Binani Cement’s plants in Rajasthan have a capacity of 6.25 million tonne a year. “The purchase of the Rajasthan unit can cater to the entire northern and western markets for domestic bidders,” said a banker.
In July, the Kolkata bench of the NCLT had admitted an insolvency petition against Binani Cement by Bank of Baroda (BoB) after the company failed to repay a sum of Rs 97 crore.
Binani Cement has a global manufacturing capacity of 11.25 million tonne per annum with an integrated plant in India and China, and grinding units in Dubai. It also has manufacturing facilities in China and Dubai - Shandong Binani Rongan Cement (SBRCCL) in China and Binani Cement Factory in Dubai.
Negotiation only with top bidder
The IBA has decided to negotiate only with the highest bidder for all the NCLT cases. The highest bidder will be asked to improve its bid. In cases where the resolutions had started before the IBC 2016 was implemented, all the bidders will be given a chance to improve their bids.
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