Hindustan National Glass promoters make ₹1,950 cr offer at fag end

In a last ditch effort, the promoters of Hindustan National Glass has submitted an application with the Committee of Creditors to pay ₹1,950 crore and equity of 5 per cent as one-time settlement to relieve the company from the insolvency process.

The proposal comes when the National Company Law Tribunal is set to hear the case on Thursday. In January, the Supreme Court rejected AGI Greenpac’s resolution plan due to regulatory non-compliance. The Apex court had instructed the CoC to reconsider the only other bidder Uganda-based Madhvani Group’s Independent Sugar Corporation plan of ₹2,200 crore and any other bids that had requisite approvals.

The company was dragged to insolvency after it defaulted on its outstanding dues of ₹3,013 crore in 2021.

In its letter to CoC, the promoters reiterated that the promoters of HNG are offering up to ₹1,950 crore, which is payable within 45 days from NCLT approval date with 90 per cent voting share of approval by the CoC members along with a potential 5 per cent equity stake, as part of a possible settlement of dues.

Bank guarantee

“As a commitment for the settlement, we are willing to issue a bank guarantee of ₹200 crore immediately within 15 days subject to provisional confirmation of our overall settlement proposal,” it said.

Advocate Yadunath Bhargavan told business line that the application filed by HNG promoters is just a delaying tactics as the promoter is allowed to file application only under Section 12-A which clearly states that the defaulted promoter has to settle the entire dues and no concession can be given besides why should CoC consider 5 per cent equity offer as part of the settlement.

Moreover, he said the Supreme Court in its judgement has directed that only fully compliant resolution plans submitted before October 28, 2022 should be considered by CoC.

Further such proposal of promoters have been rejected by CoC in past while exercising their commercial wisdom, he added.