According to sources familiar with the matter, the Hindustan National Glass & Industries Ltd (HNG) committee of creditors, led by State Bank of India (SBI), voted in favour of AGI Greenpac Ltd (98% votes) resolution plan despite their application being rejected (INVALITE) by the Competition Commission of India (CCI).
DBS Bank, HNG's third largest creditor, dragged HNG into insolvency process and later was admitted into CIRP by the Kolkata NCLT on October 21, 2021.
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The CoC's voting on three resolution plans submitted by AGI, Independent Sugar Corp, and Ahmedabad-based Nirma Chemical began on October 4th, 2022 and ended on October 28th, 2022 late evening. AGI received 98% of the votes, while independent sugar corp (a subsidiary of the Africa-based Madhwani group) received 88% votes.
INSCO (Madhwani group) of Africa offered an upfront payment of INR 1850 crore, 5% equity to lenders, and INR 50 crore to trade creditors. Madhwani Group received CCI approval within 24 hours of submitting their application to CCI, but CoC members surprisingly preferred AGI Greenpac, whose application was rejected by CCI.
Experts have also expressed some issues about how this procedure was conducted, and results were announced in RA AGI Greenpac’s favour despite the Competition Commission of India rejecting its first application.
According to sources close to the situation, RP Girish Juneja has declared AGI Greenpac to be a successful RA. As part of the next steps, RP will recommend AGI's name to the NCLT on the final day of NCLT filling, which is November 9, 2022. Concerns have been raised about the plans of a group of PSBs, led by SBI (38% exposure), to vote for a RA that is currently not in compliance.
Keeping the 9th of November 2022 as the deadline for RP recommendations and RA file names, it is known from publicly available information that AGI Greenpac hasn't submitted any reapplications at CCI as of now as per CCI website.
Singapore based DBS bank, whose exposure was 14% (INR 468 crore), initiated the insolvency process for the indebted HNG Glass in order to reclaim their money.
Assuming the company's second CCI application (if they submit one) is denied after November 9th, 2022, the company is prepared to go into liquidation.
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