Binani Cement: Exim Bk objects to Dalmia offer

KOLKATA: There was a new twist in the Binani Cement insolvency resolution on Monday. State-owned Exim Bank, an unsecured financial creditor of the debt-laden cement maker, has submitted an application to the National Company Law Tribunal (NCLT), Kolkata bench, objecting to the resolution plan of

Dalmia Bharat

Cement, which was accepted as the highest bid. The matter would be heard again on Tuesday.

It was argued on Monday that, according to the

Dalmia

Bharat offer, Exim Bank would have to take a haircut of Rs 170 crore. The state-run lender has preferred the higher offer of UltraTech Cement, which has been further revised upwards to Rs 7,900 crore, as it would recover the full amount of Binani Cement’s debt. Exim Bank has an exposure of Rs 620 crore in the troubled cement company. Ratnanko Banerjee, the counsel for

Binani Industries

, pointed out that the state-owned bank had originally written to the committee of creditors (CoC) on March 13 that it was against the resolution plan of Dalmia Bharat as it was facing a haircut of more than 27% on its dues to Binani Cement.

“In case of Dalmia’s offer, all banks are not recovering full dues,” he added.

Incidentally, the only other lender facing a haircut is

State Bank of India

(SBI), though its exposure is only Rs 37 crore. Binani Cement’s total dues to 27 lenders is Rs 6,469 crore, while Dalmia Bharat’s bid — aided by Piramal Enterprises and Bain Capital — was Rs 6,700 crore. It was recorded as the highest bid under the insolvency process. However, the Rs 6,469-crore figure does not include the dues of operational creditors (Rs 700 crore).

Last week, Binani Industries had withdrawn its petition for an out-of-court settlement in the Supreme Court. Dalmia arm Rajputana Properties also wrote to the Central Vigilance Commission (CVC), complaining against a settlement beyond the Insolvency and Bankruptcy Code, 2016.

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