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SC asks CoC to consider INSCO's plan if terms match AGI's offer for HNGI
The Supreme Court has asked the Committee of Creditors (CoC) of Hindustan National Glass and Industries (HNGI) to consider the resolution plan of Independent Sugar Corporation (INSCO), provided the cash payment by INSCO to the CoC matches AGI'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'.
Should INSCO meet these conditions, the CoC shall consider its resolution plan for HNGI, and the plan is to be approved by both the creditors and the adjudicating authority by June 27.
INSCO's plan involves ₹1,850 crore to financial creditors, in addition to 5 per cent equity and ₹50 crore to 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.
In February this year, glass and sanitaryware maker AGI Greenpac sought a review of the Supreme Court ruling that quashed the approval of its resolution plan for HNGI, citing failure to obtain proper approval from the Competition Commission of India (CCI).
'On a standalone basis, there still was a view that it was a specific case and facts that were impacting specific parties. But, in light of the JSW order, that the process is supreme, now any aggrieved party, promoter or unsuccessful bidder may try and seek relief from courts to reject and reopen all past approved and implemented resolution plans, wherein CCI approval was obtained after the CoC approval,' a senior executive at a Big Four firm said.
The Ministry of Corporate Affairs (MCA) is likely to amend the Insolvency and Bankruptcy Code (IBC) to reduce the burden on CCI. Sources said the ministry would clarify that prior permission from the CCI is not required for submitting bids under the corporate insolvency resolution process.
The Supreme Court has also agreed to hear the review petition filed by the antitrust watchdog on the issue of practical difficulties in implementing its order.
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