HNGIL resolution: CoC to vote on the INSCO's revised plan next week

The committee of creditors of Hindustan National Glass and Industries Limited (HNGIL) would vote on the final resolution plan submitted by Independent Sugar Corporation (INSCO) next week, after INSCO was directed by the Supreme Court to match the offering made by the previous bidder, according to people in the know.

 

The revised plan of INSCO was discussed in the meeting of the committee on Tuesday night, sources said.

 

“The revised plan presented by the bidder is an improved version. The committee members decided to put it up for voting, helping in efforts for resolution,” said an executive with a state-owned lender. 

 

The Supreme Court, in a recent order, had asked the CoC of HNGIL to consider the resolution plan of INSCO, provided the cash payment by the latter to the CoC matches the previous bidder AGI Greenpac’s commercial offering.

 

The apex court has also said that the resolution plan submitted by INSCO will be considered only if the company “adheres to its original payment to the operational creditors and workmen of ₹50 crore, and the equity to the CoC would remain”. 

 

If the plan fulfills these conditions, then it has to be approved by the CoC and the adjudicating authority by June 27.

 

In February this year, glass and sanitary ware maker AGI Greenpac sought a review of the Supreme Court ruling that quashed the approval of its resolution plan for HGIL, citing failure to obtain proper approval from the Competition Commission of India.

 

While the details of the plan were not available, sources said that creditors could recover a higher amount than offered by AGI Greenpac in its bid, if INSCO fulfills conditions laid by the SC.

 

In its original plan, INSCO had offered ₹1,850 crore to the financial creditors in addition to 5 per cent equity and ₹50 crore to the operational creditors. AGI Greenpac, in its plan, had offered ₹2,207 crore to financial creditors, ₹6 crore to operational creditors, but no equity to the CoC.