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NCLT approves Himadri, Dalmia Group's joint resolution plan of Birla Tyres

Himadri stated that the Kolkata bench of NCLT had given a 'verbal' approval of the insolvency resolution plan of Birla Tyres

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BS Web Team New Delhi

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Birla Tyres, through a regulatory filing with BSE, announced that the National Company Law Tribunal (NCLT) had approved the resolution plan for the company on Thursday. Shortly after Birla Tyres filing, Himadri Speciality Chemical Ltd also released a notice stating that it had received "verbal" approval of a joint resolution plan from the tribunal.

Birla Tyres was demerged in 2018 from Kesoram Industries. In May 2022, the company began insolvency proceedings with the Kolkata bench of the NCLT after a case was filed by chemicals firm SRF Ltd, an operational creditor of the B K Birla group firm.

At the time, a report by the Economic Times stated that the Dalmia Group had submitted a debt resolution plan of Rs 1,100 crore and offered to repay Rs 300 crore of the outstanding loans of the two-wheeler tyre manufacturer.

In August, however, Himadri and Dalmia Bharat Refractories Ltd submitted a joint resolution plan after receiving approval from the Committee of Creditors (CoC). Following the announcement, shares of Himadri went up by more than four per cent on August 23, reaching a 52-week high of Rs 190.90, according to a report by MoneyControl.

According to the regulatory filing by Himadri, the Kolkata bench has now approved the joint resolution plan. The filing read, "now approved verbally the resolution plan submitted jointly by the company (strategic partner) and Dalmia Bharat Refractories Ltd (resolution applicant) for acquisition of Birla Tyres Limited under the corporate insolvency resolution process (CIRP) in terms of the Insolvency and Bankruptcy Code, 2016 (IBC)."

A written order from the NCLT is awaited, both filings added.

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First Published: Oct 19 2023 | 6:37 PM IST

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