UltraTech raises offer for Binani Cement to Rs7,990 cr

Aditya Birla Group company UltraTech Cement, which lost an out-of-court deal with Binani Industries for debt-laden Binani Cement, has now raised its offer by Rs700 crore to Rs7,990 crore, hoping to alter the equation which now favours the Dalmia Bharat-led consortium.

The revised offer of Rs7,990 crore widens the gap between the offer by Dalmia group and UltraTech to Rs1,290 crore.
The offer, made to the resolution professional on Saturday evening, also covers the interest lenders would otherwise have to forgo from the day Binani Cement was admitted to bankruptcy court, according to reports.
Since banks are bound to accept the Supreme Court verdict that favoured Dalmia Bharat, which was the highest bidder and whose bid was approved by the resolution professionals and the lenders, it will now be left to the National Company Law Appellate Tribunal (NCLAT) to decide. 
Operational creditors of the troubled Binani Cement are now reported to be looking at raising the demand for a forensic audit of resolution process and the removal of resolution professionals.
It is not known whether the move, which comes after the Supreme Court’s verdict rejecting Binani Industries’ the demand for an out-of-court settlement with UltraTech will be accepted.
UltraTech had earlier made an offer of Rs7,266 crore against the Rs6,700-crore winning bid by the Dalmia Bharat-led group. Since then, Binani Industries, the parent group of Binani Cement, had sought the SC’s intervention to scrap the resolution process under Insolvency and Bankruptcy Code.
The Supreme Court on Friday asked Binani Industries to withdraw the petition and said the matter would be heard by the National Company Law Appellate Tribunal (NCLAT).
The Supreme Court, however, will be hearing another plea by a group of operational creditors that’s backing the higher offer on 19 April.
The lenders had agreed to support the UltraTech offer provided it was endorsed by the Supreme Court. In early March, lenders had declared the consortium of Dalmia Bharat-Bain Piramal Resurgent Fund as the highest bidder for Binani Cement with an offer of Rs 6,700 crore.
UltraTech’s original offer was Rs200 crore lower. But, after a week, UltraTech made a Rs7,266-crore offer, which included paying off the debts of unsecured and operational creditors.
UltraTech also moved the National Company Law Tribunal (NCLT), which hears the bankruptcy cases, seeking more transparency on the way bids were evaluated. Operational creditors also moved the bankruptcy court against banks’ decision to award the company to Dalmia.
Simultaneously, UltraTech also entered into a bilateral agreement with Binani Industries to acquire a 98.4 per cent stake. Subsequently, Binani Industries moved the Supreme Court seeking an out-of-court settlement to repay all its loans.