**Independent Sugar Corp. Revamps Resolution Plan for HNGIL**
**Meta Description:** Independent Sugar Corp. revises its ₹2,257 crore resolution plan for Hindusthan National Glass, aiming to secure the acquisition amid legal challenges.
**URL Slug:** independent-sugar-corp-revised-plan-hngil
**Independent Sugar Corp. Revamps Resolution Plan for HNGIL**
Independent Sugar Corporation (INSCO) is set to present a revised resolution plan valued at ₹2,257 crore to the committee of creditors for Hindusthan National Glass & Industries Ltd (HNGIL). This move aims to facilitate the turnaround of the bankrupt container glass manufacturer. The revision comes in response to a Supreme Court directive requiring INSCO to align its offer with that of its competitor, AGI Greenpac Ltd, in the bid to acquire HNGIL, India’s largest container glass producer.
Under the updated resolution plan, INSCO will provide an upfront cash payment of ₹1,851 crore, along with a deferred cash payment of ₹356 crore (net present value of ₹264 crore) to lenders over three years, ensuring it matches AGI Greenpac’s offer. Additionally, operational creditors and workers will receive ₹50 crore and a 5% equity stake, consistent with INSCO’s initial proposal.
On January 29, the Supreme Court dismissed AGI Greenpac’s resolution plan, citing its unsustainability due to non-compliance with the Insolvency and Bankruptcy Code guidelines. The court highlighted that AGI Greenpac failed to obtain prior approval from the Competition Commission of India (CCI). Following this, the Supreme Court instructed the committee of creditors to reassess other resolution plans, including INSCO’s, which had already secured CCI clearance.
In response to the Supreme Court’s ruling, AGI Greenpac filed a review petition, which was ultimately dismissed. The court mandated that the National Company Law Tribunal (NCLT) approve INSCO’s resolution plan within six weeks. Furthermore, the Supreme Court directed INSCO, which had received CCI approval, to match its offer with AGI Greenpac’s proposal. Subsequently, AGI Greenpac approached the CCI to review and revoke the green channel approval granted to INSCO, but the competition authority rejected their complaint.
HNGIL entered insolvency in October 2021, with the Kolkata bench of the NCLT overseeing the process. During this corporate insolvency resolution, two bidders—AGI Greenpac, valued at ₹5,000 crore, and Bermuda-based Independent Sugar Corporation—competed for the acquisition of HNGIL.
**FAQ**
**What is the significance of the revised resolution plan by INSCO?**
The revised resolution plan is crucial for INSCO to secure the acquisition of HNGIL, as it aligns with legal requirements and matches the competing bid from AGI Greenpac, thereby enhancing its chances of approval from the committee of creditors.
