Dalmia Group submits revised debt resolution plan for Birla Tyres

economictimes.indiatimes.com:

Dalmia Group firms have submitted a revised debt resolution plan for ₹1,100 crore of bank loans of Birla Tyres, which is undergoing insolvency resolution, according to people in the know. A person familiar with the new plan told ET that group companies of Dalmia Bharat have offered to repay about ₹300 crore of the outstanding loans of Birla Tyres. This is said to be three times their original offer to creditors.

Birla Tyres competes in the commercial vehicle and two-wheeler tyres segments. The new offer has been put to vote and a creditor group — comprising 11 banks and financial institutions — is expected to convey its decision by Tuesday. Birla Tyres' resolution professional Pratim Bayal did not respond to ET's queries.

Dalmia Bharat declined to comment. Birla Tyres was admitted for insolvency proceedings by the Kolkata bench of National Company Law Tribunal (NCLT) NCLT on May 5 last year. On May 2, ET had reported about the Dalmia Group's original offer of ₹100 crore.

Birla Tyres was spun off from Kesoram Industries in 2019. The company is part of the business group of the late Basant Kumar Birla.Axis Bank leads the list of creditors and accounts for almost half of the loans made by banks to the company. Over two dozen expressions of interest were received from applicants interested in proposing a debt resolution for Birla Tyres.

The list included Ceat, India Resurgent Fund, Jindal Steel & Power, Bommidala Enterprises, MCPI and Himadri Speciality Chemicals. According to Birla Tyres' website, the company has been in the business of manufacturing tyres for 25 years. It earlier had a collaboration with Italians tyre manufacturer Pirelli.