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Hindustan National Glass zooms 53% in three days on debt resolution plan

The stock locked in upper circuit of 20% for the second straight day at Rs 127 on the BSE after the company announced the resolution plan/compromise offer for the settlement of dues.

SI Reporter  |  Mumbai 

Hindustan National Glass zooms 53% in three days on debt resolution plan

was locked in upper circuit of 20% for the second straight session at Rs 127 on the BSE after the company announced the resolution plan/compromise offer for the settlement of dues.

In the past three days, the stock has zoomed 53% from Rs 83 on August 27, 2018, as compared 0.5% decline in the S&P BSE Sensex. Till 11:12 am; a combined 299,590 equity shares changed hands and there were pending buy orders for 53,378 shares on the BSE and NSE.

“The secured lenders have agreed to implement a resolution plan/compromise offer for settlement of dues comprising term loan principal outstanding’s, fund based working capital outstanding’s, etc., in line with the guidelines issued by the Reserve Bank of India (RBI) vide circular dated February 12, 2018,” said on Tuesday in a statement.

The company will approximately pay Rs 20.07 billion to all the lenders in the form of cash/ equity within 90 days from the date of conveying approval of the compromise settlement by State Bank of India (SBI) on behalf of the consortium lenders, it added.

The Company has been passing through financial stress due to high leverage and lower profitability and thus the Lenders were earlier exploring various options under RBl's restructuring guidelines like 84A, SDR etc.

Subsequently, on 12th February 2018, RBI issued the revised Restructuring guideline under which needs to be formulated within 180 days for all stressed accounts. being recognized as a stressed account by Banks under the new RBI guidelines, lenders have agreed for settlement of dues.

Hindustan National Glass & Industries is engaged in the manufacturing and selling of container glass. The major industries consuming its products are liquor, beer, soft drinks, and cosmetics.


First Published: Thu, August 30 2018. 11:10 IST
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