The Committee of Creditors (CoC) of Binani Cement will have to consider a revised offer from UltraTech Cement Ltd as the Kolkata Bench of NCLT has asked CoC and the resolution professional to consider a fresh bid by the Aditya Birla Group company, UltraTech.

The revised offer has to be accepted within three days and the resolution process has been extended till June 24. The 270-day period for Binani Cement’s insolvency process would have ended in April, had the NCLT not provided this extension.

The National Company Law Tribunal has also allowed Dalmia Group to match UltraTech’s revised offer, if it so chooses. Dalmia Bharat-controlled Rajputana Properties (RPPL), was the H1 bidder for Binani Cement.

“CoC is directed to reconsider the resolution plan of RPPL if the resolution applicant is willing to raise the offer above the offer of UltraTech….. It is made clear that if both resolution applicants are willing to participate in the bidding process, CoC is expected to allow both resolution applicants in the bidding process, and which is best for the revival of the corporate debtor is to be decided by CoC,” Justice Jinan KR and Justice Madan B Gosavi said in their order.

The progress report has to be filed by the resolution professional on June 4.

Failed bid

UltraTech’s first bid for Binani Cement under the Insolvency and Bankruptcy Code (IBC) was less than Dalmia group’s offer. At that point of time, CoC began negotiations with the H1 bidder – RPPL. The Aditya Birla group company had then attempted to revise its offer for Binani Cement, which was disallowed by CoC.

Thereafter, in a parallel deal, UltraTech had signed an agreement with Binani Industries – the parent company of Binani Cement – to buy its cement assets for Rs 7,266 crore. Over the last two months, it had revised the bid and is now said to be offering nearly Rs 8,000 crore (for Binani Cement), which would cover for all financial and operational creditor dues.

During this period, CoC listed the Dalmia Group as the preferred bidder for Binani Cement.