Birla On May 5 last year, Tires filed for insolvency proceedings before the National Company Court Court Answer (NCLT) in Kolkata.

NEW DELHI: Dalmia Group of Companies has filed a revised debt settlement against Rs 11 billion bank loan of Birla Tires, which is under insolvency, according to sources close to the matter.

A person familiar with the new scheme told The Economic Times that Dalmia Bharat Group of Companies has offered to repay about Rs 3,010 crore of Birla Tires’ outstanding loans. This is said to be three times the amount initially offered to creditors. Birla Tires competes in the commercial vehicle and two-wheeler tire segment.

The new proposal has been put to vote and a panel of 11 creditors comprising family banks and financial institutions is expected to take a decision on Tuesday.

Birla Tires solutions expert Pratim Bayal did not respond to queries from The Economic Times. Dalmia Bharat declined to comment.

On May 5 last year, the Kolkata bench of the National Company Court (NCLT) allowed Birla Tires to enter into insolvency proceedings. May 2 According to The Economic Times, Dalmia Group has made 10 proposals Rs 100 crore initial offer.

Birla Tires was spun off from Kesoram Start Industries in 2019. The company is part of the Basantt Kumar Birla business group.

Axis Bank tops the list of creditors, accounting for nearly half of the bank’s loans to businesses.

brWe have received expressions of interest from 20 many applicants who are interested in Birla to provide debt solutions to Tires. The list includes Ceat, India Resurgent Fund, Jindal Steel Power, Bommidala Enterprises, MCPI and Himadri Specialty Chemicals.

According to the Birla Tires website, the company has been in the tire manufacturing business for 25 years. The company had previously partnered with Italian tire maker Dual Endurance.

Pratim Bayal, a court-appointed resolution expert, told the stock exchanges that Birla Tires had not finalized its accounts as of March 29 of the financial year ended 31 May.

Speaking to stock exchanges, Bayal said, “Corporate debtors are facing severe financial stress and manpower shortage.” “With the CIRP comes the launch when most of the key employees, senior management and people who understand the business and operations will no longer be dealing with corporate debtors.”

Bayar said in a stock exchange filing that the finalization of the accounts will be delayed as some decisions of the creditors’ committee are still pending.

“Please note that disposal professionals will require additional time to finalize the books of accounts of the company’s debtors for FY22-20 as the Creditors’ Committee AA its members will be taking a number of decisions on accounting policies and valuation related matters. Note the occurrence of “23”.