“The forensic consultant has observed that the corporate debtor has made sales to certain potentially related and/or connected customers and entities, with nil or marginal parallel collections,” according to the application.
Lawyers representing Binani Cement
said the resolution professional
or his counsel had not served them a copy of the application in question and hence they could not comment on the issue.
Iyer also alleged that since the inception of the insolvency resolution
process for Binani Cement, he was not provided access to all information and documents required, and he had filed an application with the NCLT
on December 21 about this.
UltraTech has negotiated a share purchase agreement with the promoters of Binani Cement
subject to termination of insolvency proceedings. According to sources close to the consortium of lenders, the Rs 72.66-billion proposal mooted by UltraTech Cement
to acquire 98.43 per cent stake in Binani Cement
may be preferred by lenders as their interest earning from this deal could exceed the one they had approved during IBC proceedings.
If the lenders move the Supreme Court citing a better deal than the one agreed upon in the NCLT, Bank of Baroda, which dragged Binani Cement
to the tribunal, would have to withdraw the case first, sources added.
After conclusion of the bidding process, a Dalmia Bharat Cement-led consortium was selected by the Committee of Creditors as the highest bidder. It had signed an agreement with the committee to take over Binani Cement.
“The resolution professional
had provided incomplete information to the bidders and thus the entire bidding process and the results should be called off,” said Atul Daga, chief financial officer of UltraTech Cement.
“According to the provisions in IBC and legally as well, they will have to honour the letter of intent”, the source said.
Dalmia Bharat Cement
also provided a performance bank guarantee equal to 10 per cent of the upfront payment to be made to financial creditors as a term for acceptance of its letter of intent.
However, according to a source close to Binani Cement, unless the resolution professional’s counsel informs them about the application, in cannot be taken up in the NCLT
even if it has been submitted.
The Kolkata bench will on March 22 hear all cases submitted by the resolution professional, Binani Cement, UltraTech Cement, operational creditors and others.
Resolution professional Vijaykumar Iyer alleges fraud by Binani Cement promoters; submits application to NCLT’s Kolkata bench
Binani Cement claims it hasn’t received any copy of the application
Sources close to Dalmia Bharat claim Binani Cement promoters want to settle the sale outside the purview of IBC to escape being pulled up for alleged fraud
UltraTech says bidding process should be called off; claims it was not aware of the allegations of fraud