In the latest twist to the Binani Cement imbroglio, the promoters, Braj Binani group has asked for its shareholders' support in its fight against the National Company Law Tribunal (NCLT) process and also oppose the resolution professional Vijay Iyer's handling of the case.
In the latest twist to the Binani Cement imbroglio, the promoters, Braj Binani group has asked for its shareholders' support in its fight against the National Company Law Tribunal (NCLT) process and also oppose the resolution professional Vijay Iyer's handling of the case.
Binani Industries want the shareholders to support its proposed deal with UltraTech Cement, wherein the promoters plan to sell 98.43% of equity shares and 100% of preference shares of the subsidiary Binani Cement to the Aditya Birla group company.
In its letter to shareholders, Binani has alleged that the company's assets are being undervalued as indicated by the revised offer by UltraTech.
Binani also plans to sell some assets of parent Binani Industries that also includes properties at Ballad Estate in Mumbai and in Ahmedabad, and land parcels in Lonavala and Palghar to pay off some of its dues.
"During the pendency of the company's application (with the Supreme Court), UltraTech had revised its offer by about Rs 700 crore. With the revised offer, the company's contention that the bids received by the resolution professional did not reflect true value of Binani Cement assets has been proven right. However, the Committee of Creditors (CoC) and the resolution professional short-listed Dalmia Bharat's bid for final negotiations but even after the negotiation, Dalmia Bharat's bid remains lower than UltraTech's bid," Binani Industries chief financial officer, Visalakshi Sridhar told shareholders while seeking their consent to the planned selloff to UltraTech.
After the revised offer, UltraTech's offer now stands at Rs 7,990 crore against Dalmia's Rs 6,590 crore.
"The purported transaction (with UltraTech) enhances the value of the shareholders, in as much as the value realized through this transaction is more than the offer made by Dalmia Bharat (as per the Company's understanding)," Sridhar told the shareholders.
The NCLT bench comprising Justice Jinan KR and Madan Gosav on Tuesday asked lawyers representing the lenders that why the revised bid of UltraTech wasn't considered to which the counsel of CoC, Pratap Chatterjee, said the lenders were following the insolvency and Bankruptcy Code (IBC) and guidelines laid down by Central Vigilance Commission and also keeping in mind the timeline set for insolvency cases.
Reflecting what Binani's chief executive officer Mahendra Singhi told DNA Money, CoC lawyer said a higher bid from UltraTech was an afterthought and its consideration would set a precedence.
A resolution professional attached with a reputed consultancy firm told DNA Money that the board or any official of a company which is undergoing insolvency proceedings under IBC can't approach the shareholders with any resolution as the appointed resolution professional supersedes the board of directors.
LONG-DRAWN BATTLE
- Binani has alleged that the company's assets are being undervalued as indicated by the revised offer by UltraTech
- Binani also plans to sell some assets of parent Binani Industries that also includes properties at Ballad Estate in Mumbai and in Ahmedabad, and land parcels in Lonavala and Palghar
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