Madhvani Group's INSCO Finalizes Acquisition of Hindusthan National Glass, Ending Bankruptcy Saga

Independent Sugar Corporation (INSCO), a company associated with the Madhvani Group based in Uganda, has completed the acquisition of Hindusthan National Glass (HNG), a leading glass packaging producer in India. This development brings to a close the extensive bankruptcy proceedings that HNG underwent, which commenced in October 2021.

INSCO has fulfilled its obligations by transferring ₹1,851 crore to HNG's creditors and providing a 5% equity stake in the company. The total resolution value is estimated at ₹2,207 crore, inclusive of future cash flow commitments and the equity share. This comprehensive plan is designed to provide creditors with an approximate 58% recovery on their admitted claims, with an additional 49% recovery expected from the equity stake itself.

The path to this acquisition was fraught with legal challenges. An earlier resolution plan approved by the Committee of Creditors (CoC) for AGI Greenpac was later overturned by the Supreme Court in January, citing a failure to obtain timely approval from the Competition Commission of India (CCI). Following this, AGI Greenpac's subsequent objections to INSCO's acquisition were also rejected by the CCI, paving the way for INSCO to finalize the payment within the mandated 90-day period.

Major creditors, including State Bank of India, which holds 38% of the admitted claims, and Edelweiss ARC, are expected to see substantial recovery of their dues.

Impact: This successful resolution of a major bankruptcy case is positive for India's corporate insolvency framework. It offers financial closure for numerous creditors and promises a revival for Hindusthan National Glass under new stewardship, potentially impacting the glass manufacturing and packaging sector. It may also boost investor confidence in the resolution process for distressed assets.

Impact Rating: 7/10

Difficult Terms: Bankruptcy: A legal status of a person or entity that cannot repay their debts. Resolution Plan: A detailed proposal by a potential acquirer to revive a distressed company and pay off its creditors. Creditors: Individuals or entities who are owed money by a company. Committee of Creditors (CoC): A group formed by the company's creditors to oversee the insolvency and bankruptcy process. National Company Law Appellate Tribunal (NCLAT): An appellate body that hears appeals against orders issued by the National Company Law Tribunal (NCLT). Competition Commission of India (CCI): India's regulatory body responsible for preventing practices that adversely affect competition in the market and approving mergers. Admitted Claims: The total amount of debt that has been verified and officially accepted as owed by the company in bankruptcy. Recovery Percentage: The proportion of the total admitted debt that creditors are expected to receive back.