Committee of Creditors approves the Resolution Plan of Binani Cement Limited submitted by Rajputana Properties Private Limited, a Dalmia Bharat Group entity
New Delhi, March 15, 2018: The Committee of Creditors (“CoC”) of Binani Cement Limited (“BCL”) constituted in accordance with the provisions of the Insolvency and Bankruptcy Code 2016 ("Code"), has approved the Resolution Plan (“RP”), for revival of BCL submitted by Rajputana Properties Private Limited (“Rajputana”), a Dalmia Bharat Group entity. The Resolution Professional of BCL will now file the RP to National Company Law Tribunal (NCLT) for its requisite approval. The Competition Commission of India has already granted its approval to the proposed acquisition of the stressed asset in the fastest and record time.
Our Resolution Plan has taken care of all stakeholders including employees, workmen & small traders. The Resolution Plan envisages a disciplined investment criteria by Dalmia Bharat proposed to be achieved through Rajputana becoming a joint venture (50:50) with India Resurgence Fund (backed by Piramal & Bain). This is the first ever transaction where a foreign PE investor invested in the undertaking referred under the Code.
BCL’s acquisition is the first billion-dollar transaction achieving the fastest resolution in a record period of 233 days since its reference to NCLT in late July 2017.
BCL along with its subsidiaries, is having a global cement capacity of 11.25 million tonnes (“MnT”) with capacity in Rajasthan, India at 6.25 MnT and overseas operations include a grinding unit in Dubai of 2 MnT & clinker facility of 3 MnT along with a 0.5 MnT of grinding unit in China.
This is the third cement company under the IBC code where Dalmia Bharat Group has received approval of Resolution Plan, following Kalyanpur Cements Limited in January, 2018 and Murli Industries Limited in December, 2017.
It is noteworthy that Resolution Professional and CoC have carried out the resolution process in the most effective and expeditious manner.
Dalmia Bharat Limited
Dalmia Cement (Bharat) Limited (DBL) (BSE Code: 533309|NSE Symbol: DALMIABHA and listed in NSE) is a leading player in cement manufacturing since 1939. It is one of the largest and most diverse cement companies in India and is the world’s greenest cement company with lowest carbon footprint. With a growing capacity currently pegged at 25 MnT, Dalmia Bharat Cement is also the fourth largest manufacturing capacity in the country. Spread across 8 states and 11 manufacturing units, the company is also the category leader in super-speciality cement used for oil wells, railway sleepers and airstrips and is the country’s largest producer of slag cement. Visit us at www.dalmiacement.com