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Binani Cement, lenders to press for UltraTech deal in Supreme Court today

Binani's operational creditors say some of them might default on their loans if Dalmia's offer is accepted

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Mahendra Singhi
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While Binani Cement and its creditors are all set to place their arguments with Supreme Court today for an out-of-court deal with UltraTech, Dalmia Bharat, which had first emerged as the highest bidder for the debt-laden firm, did not move the apex court.

Dalmia Bharat would rather wait to present its part of the argument before the Supreme Court, if asked, its group chief executive officer Mahendra Singhi told DNA Money.

"Dalmia Cement hasn't moved the Supreme Court like others have done but would reply to everything we are asked. We are not fighting a lonely battle. We are on the right side of the law following all rules and regulations and request other (parties) not to do anything against the law," Singhi said.

Braj Binani group flagship company Binani Cement on Monday moved the Supreme Court, bypassing the National Company Law Tribunal (NCLT), to prevent the sale of its cement company to Dalmia Bharat, and get approval for an out-of-court deal with UltraTech.

To add to Dalmia Bharat's woes, the unpaid suppliers or the operational creditors of Binani Cement have also moved the apex court, pushing for Dalmia-UltraTech deal.

Both Binani Cement, as well as its creditors, have stated that UltraTech's deal and terms are better.

Dalmia Bharat, however, has a different take on it. "It is always possible to place a higher deal as an afterthought and no one knows what would be the (actual) size of the deal between Binani and UltraTech," Singhi said while refusing to concede that Dalmia's bid was poor.

"Otherwise the bids wouldn't have been revised thrice," he contended.

While Dalmia's Rs 6,350 crore bid was approved by the Committee of Creditors representing the financial institutions, UltraTech later bettered the offer, agreeing to pay Rs 7,266 crore for a majority stake in a pact signed with Binani promoters.

To garner support, Dalmia had recently asked Reserve Bank of India and the Chief Vigilance Commission to intervene, but Singhi indicated the group is yet to hear anything from them. "Let the law take its own course and we would submit before the apex court that the Insolvency and Bankruptcy Court is important for the country," he said.

Meanwhile, the operational creditors upped the ante, claiming a day ahead of the Supreme Court hearing that some of them might default on their loans if the Dalmia Bharat offer is accepted, as it doesn't fully settle dues of the suppliers.

According to them, one of such supplier is Sandeep Samdani, a supplier of coal to Binani's cement plant, who has an exposure of Rs 60 crore.

In case Binani is denied an out-of-court settlement with UltraTech, the supplier could default and his account might turn into a non performing asset for banks like State Bank of India, Bank of India, and Syndicate Bank, among others, they claimed.

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