Parent company of the debt-ridden Binani Cement has filed an application seeking the permission to participate in the insolvency resolution process of Binani Cement. The permission has been sought by the Binani Industries to ensure that the rights of the binani cement and its stakeholders are adequately protected and preserved during the insolvency resolution process.
Binani Industries has said that it being the largest stakeholder of the binani cement and have the maximum asset in the company still it is not allowed to participate in the insolvency proceeding and this has aggrieved the company. It further said that even after discharge of liabilities of Binani Cement to other stakeholders there will still be significant value that will accrue to the shareholders of the parent company and the company itself.
It is stated in the application filed by the parent company before the NCLT that non-inclusion of largest shareholder of the corporate debtor having more than 98% share in the insolvency proceeding is arbitrary, unfair, against the principles of natural justice and is also contrary to the Insolvency and Bankruptcy Code. The parent company said the resolution professional (RP) must be directed to provide all information and documents related to the resolution plan that the RP receives, and that the parent company should be allowed to interact with the bidders.
It further said that they should also be allowed to evaluate the bids and give the suggestions in the resolution process. They contended that the interest and rights of binani cement, its stakeholders and parent company should be protected and preserved. On July 25, 2017, Binani Cement was admitted by the national company law tribunal (NCLT) and Vijaykumar Iyer was appointed as the RP. According to Capitaline data, the consolidated debt of Binani Cement stood at Rs 3,976 crore as of March 31, 2017.
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