UltraTech Cement’s latest salvo in the ongoing bidding battle for the troubled Binani Cement Ltd (BCL) has raised several questions. The former’s Board, which met on Monday, agreed to entertain Binani Industries Ltd’s (BIL) request for arranging funds to pay off its lenders’ debts and other liabilities in lieu of BCL’s entire equity shareholding. The commercial understanding that UltraTech has sewed up with BIL to take over the latter’s 98.43% in Binani Cement is subject to the termination of IBC proceedings. Apart from seeking the customary and regulatory approvals, they will also need the blessings of the lenders with whom the promoters have pledged their shares. Any move to circumvent the NCLT-monitored process may also lead to an indefinite delay in the insolvency process.

Source: dna March 20, 2018 00:22 UTC