Hopes seem to have brightened for the Dalmia Bharat Group in its quest to acquire Binani CementBSE 0.06 %, after the Committee of Creditors (CoC) today downplayed the alleged fraud by Binani’s promoters, saying it was not related to the sale process.
“All the details are in the data room. The fraud is nothing to do with the sale. If the offer is proper, the tribunal can consider it,” a counsel on behalf of the CoC said before the NCLT, according to a source close to one of the bidders.
Resolution Professional (RP) Vijaykumar V Iyer had moved the National Company Law Tribunal (NCLT), alleging suspect and fraudulent transactions in Binani carried out by an independent forensic auditor.
The source said an unsecured creditor, Exim Bank, having exposure of about Rs 620 crore, has filed an application for maximising value in the sale.
The ramification of Exim Bank’s application could not be immediately ascertained.
UltratechBSE -2.41 % Cement, another prospective bidder for Binani Cement, has offered a higher valuation of about Rs 7,200 crore against Rs 6,500-6,600 crore bid by Dalmia Bharat.
The Kolkata bench of NCLT today heard a few applications with regard to the alleged fraud.
Lawyers associated with Binani Cement and UltraTech interpreted the tribunal’s order as implying that the RP will have to respond by March 26.
Binani Group counsel said the company has also moved an application for termination of insolvency proceedings, but the same did not come up for hearing.
The next hearing has been fixed for March 27.
Source: Economic Times