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INSCO also transferred 5% stake to complete the resolution process; SBI is set to recover Rs 703 crore. Mumbai: Independent Sugar Corporation (INSCO), a part of Uganda-based Madhvani Group, has completed the acquisition of Hindusthan National Glass (HNG), India's largest glass bottle manufacturer, concluding a long-winding bankruptcy process that started four years ago.INSCO transferred ₹1,851 crore to creditors and also a 5% stake completing the resolution process."The resolution plan was implemented last month and the money transferred. It's a big relief for creditors since this account had many litigations and dragged on for many years," said a person familiar with the case.State Bank of India (SBI) is the largest creditor with 38% of the ₹3,786 crore admitted claims. It is set to gain about ₹703 crore in recovery.SBI did not reply to an email seeking comment. Creditors will also gain from the 5% equity offered by INSCO. Overall, INSCO's offer envisages a 49% recovery for creditors on total admitted claims, excluding the equity stake value.Live EventsTotal value of the resolution plan is expected to be ₹2,207 crore, including equity stake and ₹356 crore promised to be paid to creditors from future cash flows of HNG, taking the recovery percentage to 58%.HNG was admitted to bankruptcy in October 2021. After more than a year, the committee of creditors (CoC) had approved the resolution plan of AGI Greenpac, which was then challenged by INSCO.INSCO had appealed against the National Company Law Appellate Tribunal (NCLAT) order of September 2023 that upheld AGI Greenpac's takeover plan for HNG, contending that although the requirement of approval by the Competition Commission of India (CCI) was mandatory, its prior approval by the CoC was only directory.But in a landmark order in January this year, the Supreme Court set aside AGI Greenpac's bid because it had not received the CCI approval in the stipulated timeframe.The legal too and fro continued till August this year as AGI Greenpac filed intervening applications and also challenged the CCI approval granted to INSCO."However, CCI rejected the objections raised by AGI Greenpac, clearing the way for INSCO to complete payment within a 90-day period, which the company has done," said a second person aware of the details. Other creditors to gain from the resolution include Edelweiss ARC, which had 23% of debt accumulated from HDFC Bank, Axis Bank, L&T Finance and HSBC, and DBS Bank with 13% of the debt.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onagi greenpacinscohngMadhvani GroupHindusthan National GlassHindusthan National Glass salestate bank of indiahdfc bankaxis bank (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onagi greenpacinscohngMadhvani GroupHindusthan National GlassHindusthan National Glass salestate bank of indiahdfc bankaxis bank(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
