The NCLT Mumbai bench has approved the Dalmia Cement (Bharat) offer for debt-laden Murli Industries, but has outlined certain changes to the plan that the winning bidder must make to prevent the company from going into liquidation.
The bench has directed the resolution professional of the company, Vijaykumar V Iyer, to seek acceptance from the cement major regarding the changes to the plan and submit an acceptance report by July 12. If the changes are not acceptable to Dalmia, Murli Industries will be liquidated. Dalmia Cement (Bharat) refused to offer a comment at this stage.
The liquidation value of the asset is ₹231 crore while Dalmia’s plan offers ₹402 crore for acquiring Murli’s 3-million tonne cement business in Maharashtra. As part of the offer, banks will be getting ₹380 crore out of their total dues of ₹2,783 crore, implying a haircut of 86%.
The plan was approved by 100% of the CoC in December, 2017.
However, in its detailed order reviewed by ET, the bench raised concerns about a host of clauses that it wants the company to change even as it found “strange” that the CoC and the RP approved of the plan without ensuring where the funds for the acquisition were coming from.
The tribunal refused to give approval for reinstating the lapsed mining leases and said Dalmia Cement (Bharat) will have to approach the Maharashtra state government for the necessary approvals. Another clause allowing Dalmia to modify or withdraw its plan at any stage was rejected by the tribunal, which made an order from the NCLT necessary for any modification to take place. It also maintained that de-listing of the company will be as per Sebi laws and the mere approval of the plan will not mean that the company is de-listed.
Source: Economic Times