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Bankruptcy court approves Himadri-Dalmia plan for Birla Tyres

Oct 23, 2023

By: BlinkX Research Team

The proposal by Himadri Speciality Chemical and Dalmia Bharat Refractories to buy Birla Tyres, located in Kolkata, has been accepted by the bankruptcy court. With an 82.48% voting majority, Birla Tyres' lenders had already approved the consortium's Rs 347 crore resolution plan for the listed company. Liabilities above Rs 1,662 crore have been acknowledged by the corporation.

"Our idea is to go in a niche space rather than get into the run-on-the-mill products. We are targeting EV (electric vehicle) and other niche speciality tyre space," said Anurag Choudhary, chairman and managing director of Himadri Speciality Chemical. "With this acquisition, we are also achieving forward integration for our business," he said. "We are evaluating various possibilities to use clean and green power generated in our existing facility to be transmitted to Birla Tyres for its power requirement."

"The moratorium imposed under Section 14 shall cease to have effect from the date of this order," said the Kolkata bench of the National Company Law Tribunal, comprising judicial member Bidisha Banerjee and technical member Arvind Devanathan. 

"The Resolution Plan is binding on corporate debtor and other stakeholders involved so that revival of the debtor company shall come into force with immediate effect," the October 19 order said.