Madhvani Group had emerged as the highest bidder in the first and the second round offering ₹1,800 crore and ₹1,850 crore, respectively, the person cited above said. Madhvani group also offered 5% equity to lenders and ₹50 crore to trade creditors. Nirma Chemicals quit the bidding process after participating in the second round, he said.
AgenciesAGI Greenpac, earlier known as HSIL, is owned by Somany, who is related to the promoter of HNG.
Mumbai: AGI Greenpac has emerged as the highest bidder for Hindusthan National Glass (HNG) at an auction, offering about Rs 2,100 crore for the troubled glass bottle manufacturer, two people aware of the development said.
Lenders of HNG held an auction on Wednesday with three applicants, AGI Greenpac, Nirma Chemicals and South Africa-based Madhvani Group.
Kolkata-based HNG, owned by Mukul Somany, is undergoing insolvency proceedings.
AGI Greenpac offered Rs 1,851 crore in upfront payment to HNG’s secured financial creditors and Rs 350 crore as deferred payment, one person said.
It also offered to pay Rs 5 crore to trade creditors and employees.
Lenders held three bidding rounds with Rs 1,692 crore as anchor price, calculated on a net present value (NPV) basis. Madhvani Group had emerged as the highest bidder in the first and second rounds, offering Rs 1,800 crore and Rs 1,850 crore, respectively, the person said. It also offered 5% equity to lenders and Rs 50 crore to trade creditors. Nirma Chemicals quit the bidding process after participating in the second round, the person added.
In the third round, AGI Greenpac offered Rs 2,100 crore on NPV basis, the highest bid.
The upfront payment of Rs 1,851 crore to secured lenders will equate to a recovery of 55%. Girish Juneja, the resolution professional backed by EY, has admitted Rs 3,338 crore claims from financial creditors. AGI Greenpac, earlier known as HSIL, is owned by Rajendra Somany.
Lenders conducted inter-se bidding after they received firm bids from the three applicants.
Karsanbhai Patel-promoted Nirma offered Rs 1,650 crore as upfront cash payment. The Madhvani Group offered Rs 1,500 crore, of which Rs 900 crore would be paid upfront, while AGI Greenpac offered about Rs 1,800 crore, of which Rs 500 crore would be paid upfront, as reported on July 28.
HNG promoter Mukul Somany had offered Rs 1,380 crore as staggered payment under Section 12A of the Insolvency and Bankruptcy Code.
This provision gives tribunals the power to withdraw an application from insolvency proceedings if 90% of lenders by value agree to the resolution plan.
Agencies
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