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.

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.