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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code