Dalmia Bharat is set to acquire bankrupt Kalyanpur Cement after lenders have approved a debt resolution plan, reports the Economic Times. Dalmia outbid other companies like JSW Cement, JK Lakshmi and Star Cement, in a resolution which may exceed INR3.5bn (US$54.92m). Although the National Company Law Tribunal (NCLT) have not yet approved the acquisition, a decision is expected within the coming days.
"The debt resolution assumes significance as the company is based out of Bihar, where the state government too has helped through relief and concessions. This will help generate employment in the state that is lacking in investments," said Arun Gupta, a Kolkata-based insolvency professional.
Kalyanpur was brought to the bankruptcy court last May and owes more than INR6bn to banks and creditors. The company has a 1Mta capacity but encountered production issues when the lease of its limestone mine was cancelled by the government of Bihar in 2014. In the 2016-17 period, production fell from 0.7Mta to 0.22Mta.
Elsewhere, Dalmia Bharat and OCL India Ltd have received shareholder approval for a potential merger, according to Money Control. Dalmia Bharat confirmed that the scheme received unanimous approval when it was put to the shareholders. Following this the proposition will be submitted to the NCLT for approval, which is expected within three months. The move will consolidate operations in eastern India and simplify the group structure.
