Despite the Supreme Court ruling out an out-of-court settlement, UltraTech Cement has offered to increase its offer by another ₹700 crore to acquire the stressed Binani Cement asset.
UltraTech sweetened the offer to banks, further covering the interest on loan foregone during the NCLT proceedings. The company is increasing its offer for the second time, thus, widening the difference between in its offer and that of the highest bidder Dalmia Bharat-led consortium by ₹1,290 crore.
The Aditya Birla Group company had presented the new offer to the resolution professional on Saturday and contended that it will cover the lenders’ interest right from the day Binani Cement was admitted to bankruptcy court.
Last week, Binani Industries, the parent of Binani Cement, moved the apex court with an appeal to redeem the pledge of its assets Binani Cement from lenders. Before going to court, it deposited ₹750 crore to prove its commitment, along with a bank guarantee for the remaining amount of ₹7,266 crore.
UltraTech’s revised offer comes even when the resolution professional and banks have ignored its earlier attempt to hike its bid. The lenders also issued letter of intent to Dalmia Cement.
The Supreme Court’s stand on the issue forced Binani Cement to pull out its plea to strike an out-of-court deal with UltraTech Cement.
Meanwhile, the apex court has scheduled to hear a plea by a group of operational creditors that is backing the Binani promoters’ higher offer. The hearing is scheduled for April 19.