Binani Cement's lenders call off meeting after Dalmia's objection

A scheduled meeting of Binani Cement's lenders for Thursday has been postponed after Dalmia Bharat alleged that UltraTech is ineligible from participating in the auction.

The lenders were to consider UltraTech's offer to buy Binani Cement, as per an order by the National Company Law Tribunal last week. The tribunal had also asked the lenders a revised bid from Dalmia if the company wished to offer.

Auction of Binani Cement has remained stuck after the lenders chose Dalmia's bid, only for UltraTech to contest the decision. Later, the Aditya Birla company offered to provide a line of credit to Binani Cement's parent -- Binani Industries -- in return of a majority stake in the distressed company.

But even before the lenders could consider UltraTech's offer, Dalmia has objected to the move. The Delhi-based company has argued that UltraTech's bid should be termed ineligible as the latter had made an agreement with Binani Industries, which is a defaulter.

"We are perplexed at Dalmia's move," said a source close to Binani Cement.