The National Company Law Tribunal, Kolkata Bench has approved the Resolution Plan submitted by Dalmia Bharat Refractories Limited and Himadri Speciality Chemicals Limited in respect of Birla Tyres Limited.
The revival plan submitted by the two companies had received the approval of the committee of creditors of Birla Tyres, which belongs to the Basant Kumar Birla Group of companies, with a vote share of 82.48 per cent
After the sale of shares, the bank's holding now stands at 1,06,91,192 equivalent to nearly 7.50 per cent stake in Birla Tyres, as per data provided by the bank.
The firms invested in the 16 billion rupee ($221 million) issuance from
Kesoram Industries Ltd. through various vehicles, according to an exchange filing Tuesday. The Indian cement manufacturer defaulted on its debt last year and is working to restructure repayments.
The investments reflect growing interest in Indian distressed assets. Global heavyweights such as Apollo Global Management Inc. and Oaktree Capital Group have either struck deals or scaled up their local teams in recent years to bet on businesses struggling to stay afloat in the nation, which has a worsening pile of bad loans.
Kolkata-based Kesoram, whose history dates back over 100 years, this month allotted equity shares and preference securities to 10 creditors as part of its plan to restructure debt. Funds from the bond sale will be used in part to repay existing loans and overdue liabilities.