Home Insolvency & Bankruptcy Himadri Speciality, Dalmia Bharat to acquire Birla Tyres

Himadri Speciality, Dalmia Bharat to acquire Birla Tyres

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Himadri Speciality, Dalmia Bharat to acquire Birla Tyres

The Kolkata Bench of the NCLT has permitted the Rs 347 crore decision plan collectively submitted by Himadri Speciality Chemical Ltd and Dalmia Bharat Refractories Ltd for acquisition of Birla Tyres.

In a regulatory submitting, Himadri Speciality Chemical knowledgeable that the NCLT, Kolkata Bench has “now permitted verbally the decision plan submitted collectively by the corporate (strategic associate) and Dalmia Bharat Refractories Ltd (decision applicant) for acquisition of Birla Tyres Restricted underneath the company insolvency decision course of (CIRP) by way of the Insolvency and Chapter Code, 2016 (IBC).”

A written order from the NCLT is awaited. Although the total particulars of the decision plan are usually not identified, the decision plan offers for Rs 316 crore to secured monetary collectors in opposition to their whole admitted claims of Rs 1,097 crore. Decision plan was earlier permitted by the committee of collectors by a vote share of 82.48%.

The NCLT had ordered the initiation of insolvency proceedings in opposition to Birla Tyres Ltd in a case filed by chemical substances agency SRF Ltd, an operational creditor of the B Ok Birla group agency. Birla Tyres was demerged from the group’s flagship agency Kesoram Industries in 2018.

The corporate owed Rs 16,696 crore to totally different collectors together with Rs 1,152 crore to monetary collectors. The Committee of Collectors, which contains monetary collectors, has 12 members with Axis Financial institution having the very best (49.25%) vote share. Axis Financial institution has admitted claims of Rs 555 crore. Asset Reconstruction Firm (India) Ltd has second highest vote share (17.39%) with admitted claims of Rs 196 crore.

Birla Tyres, a listed entity, was established in 1991 as a part of Kesoram Industries Restricted, initially collaborating within the manufacturing and improvement of its tyres with world-class tyre producer Pirelli. Birla Tyres demerged from Kesoram Industries Ltd vide NCLT Order dated 08 November 2019, underneath scheme of association and itemizing of shares efficient from 01 January 2019. It acquired listed on Bombay Inventory Trade and Nationwide Inventory Trade with impact from 10 February 2020.

Additionally Learn: Birla Tyres in insolvency courtroom after failing to pay Rs 16 crore to vendor SRF Ltd

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