Bidders vie for SBI's HNG loan as insolvency process drags on
ECONOMY & POLICY

Bidders vie for SBI's HNG loan as insolvency process drags on

Several companies, including Phoenix ARC and Edelweiss Asset Reconstruction Company backed by Kotak Mahindra Bank, have expressed interest in acquiring State Bank of India's loan to Hindusthan National Glass (HNG), according to sources familiar with the matter. Prudent ARC, UV ARC, and Omkara ARC are among the other entities that have submitted expressions of interest to SBI, as reported earlier.

HNG, the largest glass bottle manufacturer in the country, entered corporate insolvency in October 2021 upon a petition by DBS Bank. SBI, with a 38% share in HNG's debt, filed a claim of Rs 12.72 billion. Recognising a significant delay in the resolution process under the Insolvency and Bankruptcy Code, SBI initiated talks with ARCs to sell the loan to HNG, with an auction scheduled for February 22 and a reserve price of Rs 8.21 billion.

While Phoenix ARC and SBI did not provide comments, senior executives from Edelweiss ARC confirmed the development. HNG has received resolution plans from AGI Greenpac and Madhvani Group, with AGI Greenpac's Rs 22.13 billion plan awaiting approval from the National Company Law Tribunal, facing several litigations.

A recent report by CRISIL revealed an alarming increase in the average resolution time from 324 days in March 2019 to 653 days in September 2023. The Insolvency and Bankruptcy Code mandates resolution within 330 days, after which liquidation is considered. Girish Juneja, the EY-backed resolution professional for HNG, admitted claims totalling Rs 37.85 billion, with Rs 33.35 billion from secured financial creditors. AGI Greenpac has proposed Rs 22.07 billion for secured financial creditors, representing a 66% recovery.

Several companies, including Phoenix ARC and Edelweiss Asset Reconstruction Company backed by Kotak Mahindra Bank, have expressed interest in acquiring State Bank of India's loan to Hindusthan National Glass (HNG), according to sources familiar with the matter. Prudent ARC, UV ARC, and Omkara ARC are among the other entities that have submitted expressions of interest to SBI, as reported earlier. HNG, the largest glass bottle manufacturer in the country, entered corporate insolvency in October 2021 upon a petition by DBS Bank. SBI, with a 38% share in HNG's debt, filed a claim of Rs 12.72 billion. Recognising a significant delay in the resolution process under the Insolvency and Bankruptcy Code, SBI initiated talks with ARCs to sell the loan to HNG, with an auction scheduled for February 22 and a reserve price of Rs 8.21 billion. While Phoenix ARC and SBI did not provide comments, senior executives from Edelweiss ARC confirmed the development. HNG has received resolution plans from AGI Greenpac and Madhvani Group, with AGI Greenpac's Rs 22.13 billion plan awaiting approval from the National Company Law Tribunal, facing several litigations. A recent report by CRISIL revealed an alarming increase in the average resolution time from 324 days in March 2019 to 653 days in September 2023. The Insolvency and Bankruptcy Code mandates resolution within 330 days, after which liquidation is considered. Girish Juneja, the EY-backed resolution professional for HNG, admitted claims totalling Rs 37.85 billion, with Rs 33.35 billion from secured financial creditors. AGI Greenpac has proposed Rs 22.07 billion for secured financial creditors, representing a 66% recovery.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?