Binani lenders okay Dalmia’s resolution plan

Sanjeev Sharma

Tribune News Service

New Delhi, March 16

The acquisition of Binani Cement by Dalmia Bharat is the first billion-dollar transaction at the bankruptcy court where all secured financial creditors are being paid 100 per cent of their verified claims.

The Committee of Creditors (CoC) of Binani Cement, constituted in accordance with the provisions of the Insolvency and Bankruptcy Code 2016 (IBC), has approved the resolution plan submitted by Dalmia Bharat for the company revival. The plan has received almost 100 per cent approval of the CoC members and has been recommended to the National Company Law Tribunal for its requisite approval.

According to the company, Binani’s acquisition is the first billion-dollar transaction at the bankruptcy court where all secured financial creditors are being paid 100 per cent of their verified claims and the fastest resolution achieved in record 233 days. This transaction meets Dalmia Bharat’s investment criteria achieved through formation of joint venture (50:50) with India Resurgence Fund (backed by Piramal & Bain). This is the first-ever deal in which a foreign private equity investor invested under the IBC.

Binani Cement Limited, along with its subsidiaries, is having a global cement capacity of 11.25 million tonnes. Its India capacity is about 6.25 million tonnes. Binani Cement was referred to the National Company Law Tribunal on July 25 last year under the provisions of the IBC.