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Last Updated : Apr 03, 2018 07:46 PM IST | Source: PTI

Binani Cement lenders to meet on April 4, consider out-of-court settlement

A meeting of the Committee of Creditors has been called on April 4 to consider the NCLT order, CoC sources said.

 
 
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The lenders' committee of Binani Cement Ltd is slated to meet on April 4 to explore the possibility of an out-of-court settlement, in line with the observations made by the NCLT Kolkata bench.

A meeting of the Committee of Creditors has been called on April 4 to consider the NCLT order, CoC sources said.

A panel of two-member judges had extended the deadline for the CoC of bankrupt Binani Cement till April 9, to consider a proposal mooted by the Binani promoters for an out-of-court settlement and end NCLT proceedings.

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"We cannot say anything now. We are reviewing all the aspects," a senior Binani official said.

Binani's offer is worth Rs 7,266 crore and promises to cover all secured and unsecured creditors without any haircut in the settlement.

Binani Industries had moved the NCLT for termination of insolvency proceedings, after it received a comfort letter from UltraTech Cement of about Rs 7,200 crore.

The CoC had earlier issued a letter of intent to Dalmia Bharat Cement-led consortium, which emerged as the H1 bidder and applied to NCLT for the final nod.

Dalmia Bharat Cement CEO Mahendra Singhi is of the view that once resolution plan is submitted to the NCLT, there is a binding contract with CoC and the party, and thus an out-of-court settlement was not possible.

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First Published on Apr 3, 2018 07:35 pm
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