A momentous legal judgment has been made on the insolvency of Hindusthan National Glass (HNG), one of India’s oldest container glass-making companies.
The National Company Law Appellate Tribunal (NCLAT) has upheld the entire insolvency resolution process followed by the Resolution Professional and endorsed by the Committee of Creditors (CoC).
HNG’s insolvency resolution started in January 2022 and could reportedly accrue more than Rs 2,000 crore (£195,000).
The controversy has stemmed from the CoC selecting a large bidder that lacked unconditional approval from the Competition Commission of India CCI.
This follows a series of appeals brought before the NCLAT by various parties, with Independent Sugar Corporation and others being among the appellants.
Their appeals contested the procedural fairness and legality of the insolvency resolution process concerning HNG, including concerns regarding AGI Greenpac, which is in the race to acquire the company.
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This ruling carries significant implications not only for the HNG case but also for the broader landscape of corporate insolvency proceedings in India, setting a precedent for adherence to established procedures and transparency.
AGI Greenpac plans to maintain the glass supply chain and make substantial investments to refurbish furnaces and maintain the livelihood of all indirect and direct labour.
Packaging is the fifth largest sector in India’s economy and is one of the highest growth sectors in the country.