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Binani Industries seeks termination of insolvency proceedings, approaches UltraTech for funds

UCL has concluded commercial understanding with BIL to purchase 98.47% of the shareholding of BCL, subject to IBC proceedings termination.

In a new twist to the ongoing fight over Binani Cement (BCL), UltraTech Cement (UCL) informed that Binani Industries (BIL), parent of BCL, has approached it for arranging funds to pay-off the lenders’ debts and other liabilities. BIL is independently seeking termination of insolvency proceedings related to BCL. Following which, it has approached UCL for arranging funds to pay off the lenders and other liabilities. BIL has requested UCL for a comfort letter stating the same, which it can present in support of its application seeking termination of the Insolvency and Bankruptcy Code (IBC) proceedings.

UCL has concluded commercial understanding with BIL to purchase 98.47% of the shareholding of BCL, subject to IBC proceedings termination and other customary and regulatory approvals.

UCL board has approved and has issued the comfort letter to BIL confirming that the company would provide funds amounting to Rs7,266cr (same amount it has offered in the bid).

The committee of creditors (CoC) of Binani Cement has given a nod to Dalmia Bharat (DBL) for the acquisition in their meeting held in last week. UCL has challenged the sale of BIL assets to DBL at the National Company Law tribunal (NCLT). The matter is scheduled to be heard today at the Kolkata bench of the tribunal.

Previous Updates:

Dalmia Bharat receives approval from CoC for Binani acquisition

UltraTech ups the bid amount for Binani Cement by Rs700cr

UltraTech moves to NCLT seeking an explanation for the rejection of its bid for Binani

Dalmia Bharat outbids UltraTech in the race for Binani Cement assets