UltraTech likely to get Binani creditors’ support

Kolkata, March 20

UltraTech Cement is likely to get support from Committee of Creditors of Binani Cement in the ongoing fight for control after the Birla company issued comfort letter worth Rs 7,266 crore to Binani Group for 98.43% stake.

UltraTech had said Binani Industries Ltd — the promoter firm of BCL — had approached it for arranging funds to pay off the lenders.

“As a creditor, we support the UltraTech offer as it offers a better deal for us,” an official from a lead creditor said. This is despite the CoC’s approval of the Dalmia Bharat’s bid.

“Since the IBC proceedings initiated about 7-8 months ago on Binani, a moratorium on interest had been imposed. The UltraTech offer allows the loan to a regular one and there will be no haircut even in the interest loss in the interim period,” the official said. — PTI