Dalmia Bharat draws closer to taking over Birla Tyres
The resolution offer made by Dalmia Bharat Refractories was cleared by over 75% of creditors of Birla Tyres, well past the two-thirds majority threshold mandated under the Insolvency and Bankruptcy Code for approval of revival plans of stressed companies.
![Dalmia Bharat Dalmia Bharat](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
Axis Bank leads the group of creditors. Voting on the resolution plan concluded last week.
ET had first reported on August 19 that Dalmia Bharat had submitted a revised plan for Birla Tyres.
The resolution proposes to repay around ₹300 crore of Birla Tyres’ debt. Lenders were informed that efforts would be made by the acquirer to revive the tyre company, which makes tyres for the commercial and two-wheeler segments, according to the sources cited earlier.
Dalmia Bharat’s initial offer to creditors, which was rejected, promised to repay less than a tenth of the company’s debt.
Dalmia Bharat declined to comment when contacted. Birla Tyres’ resolution professional Pratim Bayal did not respond to ET’s queries.
As a next step , the resolution plan will be taken to the NCLT for its approval, as per sources in the know.
Dalmia Bharat Refractories has roped in Kolkata-based Himadri Speciality Chemicals as a strategic partner in the deal.
Birla Tyres was spun off from Kesoram Industries in 2019.
Over two dozen expressions of interest were received by applicants interested in proposing a debt resolution for Birla Tyres. The list included Ceat; Bain-Piramal backed India Resurgent Fund; Jindal Steel & Power, a Naveen Jindal company; Bommidala Enterprises; Purnendu Chatterjee-promoted MCPI; and Himadri Speciality Chemicals.
According to the company’s website, the BK Birla group company has been in the business of manufacturing tyres for 25 years. It earlier had a collaboration with Italian tyre manufacturer Pirelli.
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