agi greenpac: Hindusthan National Glass lenders vote in favour AGI Greenpac resolution plan

Lenders of Hindusthan Nationwide Glass (HNG), India’s largest glass bottle maker present process company insolvency, voted overwhelmingly for AGI Greenpac’s Rs 2213 crore provide to amass the corporate, stated two individuals conscious of the event.

Almost 98% of lenders by worth voted in favour of the plan introduced by AGI Greenpac, earlier often known as HSIL Ltd, whereas 88% of lenders voted for South Africa-based Madhvani Group’s plan, which was additionally within the fray providing money and fairness to lenders, one of many individuals stated.

Nirma Chemical substances, a 3rd bidder within the fray, did not obtain over 66% votes, the minimal required to get a decision plan authorised by lenders underneath the Insolvency and Chapter Code, the individual cited above stated.

Rajendra Somany owned AGI Greenpac provided Rs 1851 crore upfront and Rs 356 crore as deferred cost to lenders; and Rs 6 crore cost to staff and commerce collectors to amass a Kolkata-based firm.

Madhvani Group provided Rs 1800 crore as upfront cost, 5% fairness to lenders and Rs 50 crore to commerce collectors.

Girish Juneja, the decision skilled backed by EY, had admitted Rs 3338 crore claims from monetary collectors. AGI Greenpac’s Rs 2207 crore authorised provide to monetary collectors equates to a restoration of 66%.

In July, all three candidates submitted decision plans to the RP adopted by an public sale held on September 15 amongst them to establish the best bidder.

Inventory change listed AGI Greenpac emerged as the next bidder at an public sale, as reported by ET on September 16. Nirma Chemical substances give up the bidding course of after taking part within the second spherical.

AGI Greenpac has tied up Rs 1200 crore with a fund managed by Edelweiss to part-finance the acquisition of HNG, stated one of many individuals cited above.

Lenders would get well over Rs 2150 crore, which is way greater than the reserve value of Rs 1692 crore set for the public sale and Rs 1380 crore staggered cost provide from the HNG promoter Mukul Somany underneath Part 12A of IBC.

This provision offers tribunals the ability to withdraw an software from insolvency proceedings if 90% of lenders by worth conform to the decision plan.

RP and Edelweiss didn’t reply to ET’s request for feedback.

In July, when the three bidders submitted decision plans, Nirma Chemical substances, makers of detergent soaps and cosmetics, had emerged as the best bidder providing Rs 1650 crore, as reported by ET on July 29. AGI Greenpac provided 1800 crore whereas Madhvani Group had provided Rs 1500 crore in a mix of upfront and deferred cost.