Latest news with #INSCO
Mint
4 days ago
- Business
- Mint
Delhi HC directs competition regulator to review green channel nod for INSCO in HNGIL buyout
The Delhi High Court on Tuesday gave the anti-Trust regulator Competition Commission of India (CCI) 10 days to decide on packaging manufacturer AGI Greenpac's plea challenging its fast-track 'green channel' approval to Independent Sugar Corp. (INSCO), the Indian arm of Uganda's Madhvani Group, for acquiring Hindustan National Glass and Industries Ltd (HNGIL). Justice Sachin Datta's bench granted relief to AGI Greenpac, whose ₹ 2,752 crore approved plan was earlier quashed by the Supreme Court due to procedural lapses. AGI Greenpac approached the high court after the CCI allegedly did not consider its representation challenging INSCO's approval. On 4 June, Greenpac wrote to CCI urging it to withdraw the green channel clearance. Under this route, mergers and acquisitions with no competition concerns receive automatic approval without a detailed review. Greenpac contended that the approval breached Regulation 5A, which mandates joint filing by all parties seeking green channel clearance, whereas INSCO had filed on its own. It claimed this violation could negatively impact HNGIL and its creditors. HNGIL, India's largest container glass manufacturer, entered insolvency in October 2021under the Insolvency and Bankruptcy Code (IBC) after defaulting on loans exceeding ₹ 2,000 crore. The insolvency proceedings began in 2018 when HSBC Daisy Investments (Mauritius) Ltd filed a petition against HNGIL over unpaid dues exceeding ₹ 2,500 crore, leading NCLT Kolkata to admit the case and initiate bankruptcy proceedings. During the resolution process, AGI Greenpac and INSCO emerged as key contenders. AGI Greenpac's ₹ 2,752 crore plan was initially approved by NCLT and later by NCLAT in September 2023. However, INSCO challenged this before the Supreme Court. On 29 January, the Supreme Court quashed AGI Greenpac's resolution plan for failing to meet regulatory requirements. It also reversed NCLAT's order upholding AGI's plan and directed the CoC to reconsider resolution proposals to ensure full compliance with competition law. The Supreme Court ruling cleared the way for INSCO to make fresh attempts to acquire HNGIL. INSCO told the court it would match AGI's cash offer to financial creditors, increasing its total payout to ₹ 2,752 crore from the original ₹ 2,395 crore offer, thus enhancing creditor recovery to 58% from 49%. The HNGIL case has become another example of an approved resolution plan being set aside by the courts on procedural grounds, causing delays and bottlenecks in India's insolvency landscape. Recently, the Supreme Court also set aside the approved ₹ 19,000 crore JSW Steel resolution plan for Bhushan Power and Steel on the grounds of illegality in the plan, underscoring systemic hurdles. In a written reply to the Lok Sabha in December 2024, finance and corporate affairs minister Nirmala Sitharaman informed that insolvency-related matters account for the lion's share of NCLT's backlog. As of 31 December 2024, there were 12,351 pending insolvency cases out of a total pendency of 20,484 cases at NCLT. The remaining 8,133 cases were related to the Companies Act, 2013.
Time of India
16-06-2025
- Business
- Time of India
Lenders approve Uganda-based INSCO's ₹2,257-crore plan for Hindusthan Glass
(You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel A committee of creditors who include State Bank of India , Edelweiss Asset Reconstruction Company and DBS Bank has cleared Uganda-based Independent Sugar Corp's revised resolution plan for bankrupt Hindusthan National Glass HNG ).Under the Supreme Court-approved proposal, Independent Sugar Corp (INSCO) has improved its initial offer by ₹356 crore to ₹2,257 crore. The committee cleared it with 96.16% of votes in favour. INSCO has agreed to pay ₹1,901.5 crore upfront through a mix of equity, quasi-equity and debt. An additional deferred payment of ₹356.3 crore will be made to secured financial creditors over three years, funded from HNG's future cash financial creditors will get ₹2,207 crore, or 66.18% of their admitted claims of ₹3,335 crore. The ₹2,257 crore proposal also covers payment to operational creditors like employees. Letters of support from debt funds for both the upfront payment and working capital needs have been submitted as part of the plan. INSCO has proposed a strategy involving a ₹1,000 crore capital expenditure to turn around HNG's operations. The plan focuses on rebuilding furnaces and upgrading equipment to revive the largest container glass manufacturer.
Time of India
13-06-2025
- Business
- Time of India
INSCO Resolution Plan: INSCO Proposes Rs 2,752 Cr Takeover of HNGIL Following Supreme Court Directive, ET LegalWorld
Independent Sugar Corporation (INSCO) has submitted a comprehensive revised resolution plan worth Rs 2,752 crore for the takeover of debt-ridden glass bottle manufacturer Hindusthan National Glass & Industries Limited (HNGIL), in line with the Supreme Court verdict. The Committee of Creditors (CoC) is likely to consider the revised proposal, and voting is likely to commence on Thursday, sources said. INSCO, a company promoted by the Madhvani Group, having operations in many countries, has submitted a revised resolution plan on June 8, making Rs 2,752 crore offer comprising Rs 2,200 crore in upfront cash and equity valued at around Rs 550 crore. Advt Advt Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETLegalWorld App Get Realtime updates Save your favourite articles Scan to download App The revised offer comes following the Supreme Court's directive to match the offer previously made by AGI per the apex court's order, only INSCO's plan will be considered for approval, with the entire resolution process, including voting, to be completed by July plan outlines payment of the entire Rs 2,200 crore cash component within 30 days of National Company Law Tribunal (NCLT) approval, along with infusion of working capital and equity issuance to CoC members within 90 fund the acquisition, INSCO has submitted a non-binding term sheet to Cerberus Capital Management with the resolution plan."It is estimated that significant capex would be required to revive and revitalise the business. We have budgeted about Rs 1,000 crore to rebuild all the furnaces and other equipment over the next few years," the resolution plan sources said, some of the CoC members have flagged serious concerns over the viability and transparency of the sources said, lenders allege that INSCO's current plan does not adhere fully to the Supreme Court's AGI Greenpac was the front runner for HGIL, with a bid of Rs 2,752 crore. However, the Supreme Court in January rejected the bid on the ground that the company did not have a Competition Commission of India (CCI) approval for the had moved the court seeking cancellation of AGI Greepac's bid since the company did not receive CCI rejecting a review petition filed by AGI Greenpac, the Supreme Court directed INSCO, the second-highest bidder, to match the offer given by AGI court also directed the resolution professional to complete the resolution process involving the approval of the INSCO resolution plan by the CoC by July 2025.
Time of India
12-06-2025
- Business
- Time of India
INSCO submits Rs 2,752 crore revised resolution plan for HNGIL take over
Independent Sugar Corporation (INSCO) has submitted a comprehensive revised resolution plan worth Rs 2,752 crore for the takeover of debt-ridden glass bottle manufacturer Hindusthan National Glass & Industries Limited (HNGIL), in line with the Supreme Court verdict. The Committee of Creditors (CoC) is likely to consider the revised proposal, and voting is likely to commence on Thursday, sources said. INSCO, a company promoted by the Madhvani Group, having operations in many countries, has submitted a revised resolution plan on June 8, making Rs 2,752 crore offer comprising Rs 2,200 crore in upfront cash and equity valued at around Rs 550 crore. The revised offer comes following the Supreme Court's directive to match the offer previously made by AGI Greenpac . As per the apex court's order, only INSCO's plan will be considered for approval, with the entire resolution process, including voting, to be completed by July 2025. Live Events INSCO's plan outlines payment of the entire Rs 2,200 crore cash component within 30 days of National Company Law Tribunal (NCLT) approval, along with infusion of working capital and equity issuance to CoC members within 90 days. To fund the acquisition, INSCO has submitted a non-binding term sheet to Cerberus Capital Management with the resolution plan. "It is estimated that significant capex would be required to revive and revitalise the business. We have budgeted about Rs 1,000 crore to rebuild all the furnaces and other equipment over the next few years," the resolution plan said. However, sources said, some of the CoC members have flagged serious concerns over the viability and transparency of the proposal. Further, sources said, lenders allege that INSCO's current plan does not adhere fully to the Supreme Court's directives. Initially, AGI Greenpac was the front runner for HGIL, with a bid of Rs 2,752 crore. However, the Supreme Court in January rejected the bid on the ground that the company did not have a Competition Commission of India (CCI) approval for the acquisition. INSCO had moved the court seeking cancellation of AGI Greepac's bid since the company did not receive CCI approval. While rejecting a review petition filed by AGI Greenpac, the Supreme Court directed INSCO, the second-highest bidder, to match the offer given by AGI Greenpac. The court also directed the resolution professional to complete the resolution process involving the approval of the INSCO resolution plan by the CoC by July 2025. Economic Times WhatsApp channel )
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Business Standard
12-06-2025
- Business
- Business Standard
INSCO submits Rs 2,752 crore revised plan for HNGIL takeover after SC order
Independent Sugar Corporation (INSCO) has submitted a comprehensive revised resolution plan worth Rs 2,752 crore for the takeover of debt-ridden glass bottle manufacturer Hindusthan National Glass & Industries Limited (HNGIL), in line with the Supreme Court verdict. The Committee of Creditors (CoC) is likely to consider the revised proposal, and voting is likely to commence on Thursday, sources said. INSCO, a company promoted by the Madhvani Group, having operations in many countries, has submitted a revised resolution plan on June 8, making Rs 2,752 crore offer comprising Rs 2,200 crore in upfront cash and equity valued at around Rs 550 crore. The revised offer comes following the Supreme Court's directive to match the offer previously made by AGI Greenpac. As per the apex court's order, only INSCO's plan will be considered for approval, with the entire resolution process, including voting, to be completed by July 2025. INSCO's plan outlines payment of the entire Rs 2,200 crore cash component within 30 days of National Company Law Tribunal (NCLT) approval, along with infusion of working capital and equity issuance to CoC members within 90 days. To fund the acquisition, INSCO has submitted a non-binding term sheet to Cerberus Capital Management with the resolution plan. "It is estimated that significant capex would be required to revive and revitalise the business. We have budgeted about Rs 1,000 crore to rebuild all the furnaces and other equipment over the next few years," the resolution plan said. However, sources said, some of the CoC members have flagged serious concerns over the viability and transparency of the proposal. Further, sources said, lenders allege that INSCO's current plan does not adhere fully to the Supreme Court's directives. Initially, AGI Greenpac was the front runner for HGIL, with a bid of Rs 2,752 crore. However, the Supreme Court in January rejected the bid on the ground that the company did not have a Competition Commission of India (CCI) approval for the acquisition. INSCO had moved the court seeking cancellation of AGI Greepac's bid since the company did not receive CCI approval. While rejecting a review petition filed by AGI Greenpac, the Supreme Court directed INSCO, the second-highest bidder, to match the offer given by AGI Greenpac. The court also directed the resolution professional to complete the resolution process involving the approval of the INSCO resolution plan by the CoC by July 2025.
