India’s largest container glass manufacturer, Hindusthan Glass & Industries Limited (HGIL), has received a revised resolution plan from Independent Sugar Corporation (INSCO). The Kolkata-based company, which was admitted into insolvency in 2021, is expected to fetch as much as ₹2,752 crore from Bermuda-based INSCO.
According to a report by Moneycontrol, INSCO, backed by East Africa’s Madhvani Group, submitted the resolution plan on June 8. It proposes an upfront payment of around ₹2,200 crore and an additional ₹550 crore in equity infusion for creditors.
The plan also reportedly includes about ₹1,000 crore in capital expenditure over the next few years to rebuild furnaces and other equipment—highlighting that a decade of underinvestment, along with staff turnover and strikes, has weakened the assets.
The Committee of Creditors (CoC) is set to vote on the plan on June 12.
How the Supreme Court Raised INSCO’s Insolvency Bid
INSCO’s revised offer for HGIL follows a key Supreme Court ruling on January 29. HGIL had entered insolvency proceedings in October 2021, initiated by the Kolkata bench of the NCLT. During the process, two companies—AGI Greenpac and Independent Sugar Corporation (INSCO)—competed for the acquisition.
INSCO challenged AGI Greenpac’s bid in the Supreme Court, citing its lack of approval from the Competition Commission of India (CCI). The Court upheld INSCO’s argument, rejected AGI's offer, and instructed the CoC to reconsider bids that had already secured regulatory clearance, including INSCO’s.
AGI Greenpac filed a review petition, but the Supreme Court dismissed it in an order published on May 30. However, the court asked INSCO to match Greenpac's offer in key financial terms.
As a result, INSCO was required to revise its proposal to include an upfront payment of ₹1,851 crore, along with a deferred payment of ₹356 crore (net present value: ₹264 crore) to be made over three years. The company also had to offer ₹50 crore and a 5% equity stake to operational creditors and workmen—terms consistent with its original bid.
If approved by the CoC and the adjudicating authority (NCLT), the resolution plan must be finalised by June 27.
Lenders Still Sceptical
According to Moneycontrol, some of HGIL’s creditors remain sceptical about INSCO's ability to fund the ₹2,752 crore proposal. To finance the deal, INSCO has signed a non-binding agreement with US-based investment firm Cerberus Capital for bridge financing. However, concerns persist, as the agreement is not final and the funding is yet to be secured.
One creditor told the portal that the plan to raise ₹1,550 crore via non-convertible debentures based on an unclear and non-binding document makes the “funding appear speculative, if not misleading.”
