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| Exchange Received Time 19/03/2018 17:17:13 Exchange Disseminated Time 19/03/2018 17:17:18 Time Taken 00:00:05 | The Board of Directors of the Company met today March 19, 2018 and have decided that the Company should apply to the National Company Law Tribunal to terminate the insolvency proceedings commenced against the subsidiary of the Company, Binani Cement Ltd.
In order to terminate the IBC proceedings, Binani Cement Ltd will be required to pay off the lenders debts and other liabilities as admitted in the IBC proceedings. To add credibility to its application, BIL had approached to UltraTech Cement Ltd to support the Company and Binani Cement Ltd with the funds required to pay off the amount determined as due on the basis of admitted claims in IBC proceedings. In consideration thereof, upon the termination of the insolvency proceedings of Binani Cement Ltd, the Company has agreed and concluded in-principle commercial understanding to sell its entire 98.43% shareholding interest in Binani Cement Ltd to Ultra Tech Cement Ltd. The transfer would be based on entering into definitive agreements and would be subject to other customary and regulatory approvals.
The Company has accordingly, requested a letter of comfort from UltraTech Cement Ltd and upon receipt of same will be making the requisite application for termination of insolvency proceedings of Binani Cement Ltd.
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