The resolution professional (RP) of insolvent Binani Cement has postponed the creditors’ meet, which was scheduled for Thursday, citing that the resolution plan submitted by UltraTech Cement in the “format acceptable” to the creditors is still being negotiated, sources close to the development said.
Informing the stakeholders about the postponement of the CoC meet, the RP, Vijaykumar V Iyer, said verification of over 100 new claims was being completed on Wednesday.
While the RP and the CoC have sought some clarifications from UltraTech Cement with regard to its proposed resolution plan, Dalmia Bharat-controlled Rajputana Properties has not raised its offer of around `6,930 crore for the debt-laden cement maker.
“Clarification sought from from UltraTech is more procedural in nature,” banking sources said. UltraTech Cement did not respond to FE’s query till the time of going to the press.
Dalmia Bharat wrote a letter to the RP on Tuesday, asking him to share the resolution plan of UltraTech Cement with it, one of the large financial creditors of the bankrupt company told FE.
When contacted, Dalmia Cement (Bharat) Group CEO Mahendra Singhi was unavailable for a comment.
The CoC in its last meeting, held on May 18, had asked Dalmia Bharat to match the Rs 7,960-crore revised offer from rival bidder UltraTech Cement by May 23, if the company wanted to. This bid of Dalmia Bharat, which includes an infusion of working capital and capex, had been declared the highest bid (H1) on February 27.
The CoC was scheduled to meet on May 24 to consider the bids of Dalmia Bharat and UltraTech. The RP, however, informed the stakeholders on Wednesday that the meet has been postponed.
“Further to the advance intimation below, the resolution plan in the format acceptable to the CoC is still being negotiated and verification of the 109 new claims received post March 14, 2018 is being completed today. The requirement for circulation of Agenda Notice (of the meet) and supporting papers at least 24 hours before the meet is not possible. Hence, I am postponing the meeting and will revert with the new date,” Iyer said in the letter to the stakeholders.
However, people involved in the matter questioned the delay in the resolution process for the insolvent cement company. “Since Dalmia Bharat has not revised its bid, we don’t understand why a decision is not being taken,” a stakeholder in the case wondered.
According to a source, Dalmia Bharat did not revise its offer as it has been legally challenging UltraTech’s revised bid.
The National Company Law Appellate Tribunal (NCLAT) on Tuesday rejected Dalmia Bharat’s petition for a status quo on the resolution process for Binani Cement. The appellate tribunal also said that the aim of the Insolvency and Bankruptcy Code (IBC) was to maximise return on assets. It asked the resolution professional (RP) to continue with the resolution process, but added that the final outcome will be subject to its order. It asked both the resolution applicants to give written submissions on why they are eligible to bid for Binani Cement.
The NCLAT will now hear the matter on July 10, when it reconvenes after its summer break.