SBI: SBI taps ARCs for sale of Hindusthan National Glass loan
Lenders had voted for a plan given by AGI Greenpac in October 2022, but due to a series of litigations, the plan is yet to be approved by the bankruptcy court. The country’s largest glass bottle maker was admitted for corporate insolvency in October 2021 on a petition by DBS Bank.
Disappointed with the inordinate delay in the resolution process, SBI decided to find buyers for HNG’s loans, one of the persons cited above said.
“SBI is trying to gauge interest among ARCs for the HNG loan. They want to close the transaction by March this year. The upside is capped, and ARCs are assuming that the resolution will take at least one year given the series of litigations,” a person cited above said.
SBI did not respond to ET’s request for comments.
A report by Crisil stated that between March 2019 and September 2023, the average resolution time rose from 324 days to 653 days. The Insolvency and Bankruptcy Code stipulates that the process should conclude in 330 days, failing which the debtor should be liquidated.
Rajendra Somany-owned AGI Greenpac emerged as the winning bidder at an inter-se bidding held mid-September 2022. Madhvani Group’s Independent Sugar Corporation and Karsanbhai Patel-promoted Nirmal Chemicals were also in the fray for HNG.AGI Greenpac’s ₹2,213 crore resolution plan was approved by 98% of lenders in October 2022.
Madhvani group had challenged the Competition Commission of India’s (CCI) approval to AGI Greenpac for the acquisition of HNG. In July 2023, the National Company Law Appellate Tribunal upheld CCI’s decision, giving conditional nod in March 2023.
Girish Juneja, the EY-backed resolution professional, admitted ₹3,785 crore claims of which ₹3,335 crore are from secured financial creditors. SBI, which filed a claim for ₹1,272 crore, has a 38% share. AGI Greenpac offered ₹2,207 crore to secured financial creditors equating to a recovery of 66%. It offered ₹1,851 crore upfront and ₹356 crore as deferred payment. Madhvani Group offered ₹1,800 crore upfront, 5% equity to lenders and ₹50 crore to trade creditors.