Birla’s last-minute $1.1 billion bid entertained by lenders

Bloomberg

Binani Cement Ltd. lenders will entertain a local tycoon’s last-minute $1.1 billion bid for the insolvent Indian company, people with knowledge of the matter said.
The committee of creditors decided at a meeting it would be willing to support the proposal, which would see Binani Cement sold to billionaire Kumar Mangalam Birla’s UltraTech Cement Ltd., according to the people. The banks plan to tell Binani Cement’s parent company that they could give their backing if it first obtains relevant approvals, the people said, asking not to be identified because the information is private.
Lenders will require Binani Industries Ltd. to pay them an initial $115 million and provide a bank guarantee covering the remaining bid amount, one of the people said. The plan would need approval from India’s National Company Law Tribunal, according to another person.
The move would overturn a decision the lenders made last month to support an offer from a rival consortium that includes Dalmia Bharat Ltd., a domestic competitor of UltraTech, and a Bain Capital-backed fund.
After creditors picked their preferred bidder, UltraTech made a higher offer directly to Binani Industries.