Source : PTI | Himadri Speciality Chemical Ltd on Thursday said the National Company Law Tribunal (NCLT) has verbally approved the joint resolution plan submitted by the company and Dalmia Bharat Refractories Ltd to acquire under the insolvency process.
This is a significant development in the case of Birla Tyres, which has been undergoing insolvency proceedings since May 2022. The NCLT had ordered the initiation of insolvency proceedings against the company after a case was filed by chemicals firm SRF Ltd, an operational creditor of Birla Tyres.
The joint resolution plan submitted by Himadri Speciality Chemical and Dalmia Bharat Refractories proposes to repay a portion of the ₹1,100 crore of bank loans that Birla Tyres owes to its creditors. The plan was approved by over 75% of Birla Tyres’ creditors in August 2023, well past the two-thirds majority threshold required under the Insolvency and Bankruptcy Code (IBC).
The NCLT’s verbal approval of the resolution plan is the final step before the acquisition of Birla Tyres by Himadri Speciality Chemical and Dalmia Bharat Refractories is finalized. A written order from the NCLT is awaited, but the two companies are expected to take control of Birla Tyres in the coming weeks.
The acquisition of Birla Tyres by Himadri Speciality Chemical and Dalmia Bharat Refractories is a positive development for all stakeholders involved. It will allow Birla Tyres to continue operations and provide jobs to its employees. It will also help to reduce the company’s debt burden and make it more competitive.
