Latest news with #INSCO
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Business Standard
6 days ago
- Business
- Business Standard
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.
Time of India
7 days ago
- Business
- Time of India
Hindusthan National Glass lenders to recover more as INSCO to match AGI Greenpac bid
The Supreme Court 's latest ruling in the Hindusthan National Glass (HNG) insolvency case has increased the recovery for creditors as the payout by Independent Sugar Corporation (INSCO), the successful resolution applicant, has gone up. While dismissing AGI Greenpac 's review petition in the insolvency matter, SC recorded the assurance of Abhishek Manu Singhvi, counsel for INSCO, that the company remains committed to its earlier proposal to the Committee of Creditors (CoC). As per this commitment, INSCO will match AGI's cash offer to financial creditors, which pushes total payout to ₹2,752 crore, that is ₹357 crore higher than its original offer. INSCO's original resolution plan proposed a payout of ₹1,850 crore to financial creditors (FCs), ₹50 crore to operational creditors (OCs), and a 5% equity stake in the company, valued at ₹495 crore, to the FCs. This brought the total consideration under the plan to ₹2,395 crore. INSCO's offer of ₹1,850 crore had envisaged 49% recovery for creditors on total admitted claims of ₹3,786 crore, where now the recovery will go up to 58%. However, following the Supreme Court's directive, INSCO will now match the higher upfront cash offered by AGI Greenpac to the financial creditors. The revised structure requires INSCO to pay ₹2,207 crore to FCs, while maintaining the ₹50 crore outlay to OCs. The 5% equity component to lenders remains unchanged, with a value of ₹495 crore. This pushes INSCO's total payout to ₹2,752 crore, which is significantly higher than its original offer. The Supreme Court on Friday dismissed a review petition filed by AGI and recorded senior advocate Abhishek Manu Singhvi's statement that INSCO will pay as per the February 24 proposal to the Committee of Creditors (CoC). The court directed the CoC to reconsider the resolution plan on three parameters-matching AGI's cash component, maintaining the ₹ 50 crore payout to operational creditors and workmen, and preserving the equity offer. "We propose to place on record the statement of Dr. Abhishek Manu Singhvi... that INSCO is bound by the commitment made to the CoC vide letter dated 24.02.2024," the court said. The ruling provided clarity in a prolonged legal battle between the two bidders and affirms INSCO's enhanced commitment to resolving the HNGIL insolvency. On January 29, 2025, the Supreme Court rejected AGI Greenpac 's resolution plan for HNG, stating it violated Insolvency and Bankruptcy Code (IBC) rules. The Court noted that the plan lacked prior approval from the Competition Commission of India (CCI) before being voted on. AGI later filed a review petition, arguing that the verdict had clear errors and major procedural lapses.
