Core Insights - INSCO has completed the acquisition of Hindusthan National Glass (HNG), concluding a lengthy bankruptcy process that began four years ago, by transferring ₹1,851 crore to creditors and offering a 5% equity stake [1][7] - The total value of the resolution plan is expected to be ₹2,207 crore, which includes the equity stake and ₹356 crore promised to be paid to creditors from future cash flows of HNG, resulting in a recovery percentage of 58% [5][7] Creditor Recovery - State Bank of India (SBI) is the largest creditor, holding 38% of the ₹3,786 crore admitted claims, and is set to recover approximately ₹703 crore [2][7] - Overall, INSCO's offer provides a 49% recovery for creditors on total admitted claims, excluding the equity stake value [2][7] Legal Proceedings - HNG was admitted to bankruptcy in October 2021, and after more than a year, the committee of creditors approved INSCO's resolution plan, which was initially challenged by AGI Greenpac [5][7] - The Supreme Court set aside AGI Greenpac's bid in January 2023 due to the lack of timely approval from the Competition Commission of India (CCI) [6][7] - CCI rejected objections from AGI Greenpac, allowing INSCO to complete the payment within a 90-day period [7]
INSCO pays creditors ₹1,851 crore to complete Hindusthan National Glass buy
The Economic Times·2025-11-02 18:43