Birla Tyres announced that the National Company Law Tribunal (NCLT) had approved the resolution plan for the company on Thursday in a regulatory filing with BSE. Shortly after Birla Tyres’ filing, Himadri Speciality Chemical also released a notice stating that it had received “verbal” approval of a joint resolution plan from the tribunal. 

Birla Tyres was demerged in 2018 from Kesoram Industries. In May 2022, the company began insolvency proceedings with the Kolkata bench of the NCLT after a case was filed by chemical company SRF, an operational creditor of the BK Birla group company. 

At the time, a report in a financial daily had said that the Dalmia Group had submitted a debt resolution plan of Rs 1,100 crore and offered to repay Rs 300 crore of the outstanding loans of the two-wheeler tyre manufacturer. 

In August, however, Himadri and Dalmia Bharat Refractories had submitted a joint resolution plan after receiving approval from the Committee of Creditors (CoC). Following the announcement, shares of Himadri had gone up by more than 4 per cent on August 23, reaching a 52-week high of Rs 190.90. 

According to the regulatory filing by Himadri, the Kolkata bench had now approved the joint resolution plan. The filing read: “…now approved verbally the resolution plan submitted jointly by the company (strategic partner) and Dalmia Bharat Refractories (resolution applicant) for acquisition of Birla Tyres under the Corporate Insolvency Resolution Process (CIRP) in terms of the Insolvency and Bankruptcy Code, 2016 (IBC).”