Independent Sugar to submit revised plan for bankrupt Hindusthan National Glass
Under the revised resolution plan, INSCO will have to pay an upfront cash of ₹1,851 crore. A deferred cash payment of ₹356 crore (net present value— ₹264 crore) will be made to the lenders over a span of three years to match sanitary ware and glass container maker AGI Greenpac's offer.
Independent Sugar Corp. (INSCO) will submit a revised resolution plan worth ₹2,257 crore to Hindusthan National Glass & Industries Ltd's (HNGIL) committee of creditors in an attempt to turn around the bankrupt container glass manufacturer, a counsel involved in the matter said on the condition of anonymity.
The resolution plan has been revised following a Supreme Court directive that ordered INSCO to match its offer with its rival bidder.
INSCO was in a race with AGI Greenpac Ltd to acquire Kolkata-based HNGIL, India’s largest container glass manufacturer.
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Under the revised resolution plan, INSCO will have to pay an upfront cash of ₹1,851 crore. A deferred cash payment of ₹356 crore (net present value— ₹264 crore) will be made to the lenders over a span of three years to match sanitary ware and glass container maker AGI Greenpac's offer.
Besides, the operational creditors and workmen will receive ₹50 crore along with a 5% equity in line with INSCO's original offer.
On 29 January, the Supreme Court dismissed AGI Greenpac's resolution plan saying that the offer was unsustainable due to non-compliance with the guidelines of the Insolvency and Bankruptcy Code.
The court specifically noted that AGI Greenpac did not secure prior approval from the Competition Commission of India (CCI). Additionally, the Supreme Court instructed the committee of creditors (CoC) to re-evaluate other resolution plans, such as INSCO’s, which had already received CCI clearance.
Aggrieved by the Supreme Court order, AGI Greenpac had filed a review petition before the top court. However, the court in its order that was made publicly available on 30 May, dismissed the petition, and directed the NCLT to approve INSCO's resolution plan within six weeks.
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More importantly, the Supreme Court had asked INSCO that had already received a CCI approval, to match its offer with AGI Greenpac's.
Subsequently, AGI Greenpac moved Competition Commission of India to review and revoke its green channel approval given to INSCO.
The competition watchdog, however, rejected the complaint submitted by AGI Greenpac.
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HNGIL was admitted into insolvency in October 2021 by the Kolkata bench of the NCLT. During the corporate insolvency resolution process, two bidders—AGI Greenpac, with a market cap of ₹5,000 crore, and Bermuda-based Independent Sugar Corporation—vied for the acquisition of HNGIL.
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