The National Company Law Appellate Tribunal (NCLAT) has dismissed the challenge brought forth by Independent Sugar Corporation Limited (INSCO) and other companies against the Competition Commission of India’s (CCI) approval of AGI Greenpac’s takeover of Hindustan National Glass & Industries (HNG) under corporate insolvency resolution process.
The judgment clears the path for faster resolution of HNG under the Insolvency and Bankruptcy Code (IBC).
“AGI Greenpac expects that with the NCLAT order today, the approval of its resolution plan at NCLT Kolkata should now accelerate,” the company said in a statement.
In March 2023, CCI granted approval to AGI Greenpac’s takeover of HNG.
AGI emerged as the highest bidder in September 2022 for the acquisition of HNG under a bidding process run by Resolution Professional (RP) and the Committee of Creditors (CoC) led by the State Bank of India (SBI).
INSCO lost the bidding process to AGI Greenpac and AGI Greenpac’s resolution plan was approved by 98 per cent of the committee of creditors in October 2022.
The proposed acquisition of HNG by AGI Greenpac is expected to maintain the supply chain of liquor, beer, food, and pharmaceutical sectors which require regular supplies of container glass bottles.
“The glass manufacturing furnaces of HNG have not been maintained for a long time and a few of the furnaces have leaked leading to uncertainties of supplies to major liquor, food, and pharma sector,” it added.
AGI plans to make substantial investments post-acquisition of HNG towards the refurbishing of furnaces and is expected to maintain the livelihood of all direct and indirect labour involved with its business.
“This landmark ruling represents the NCLAT’s commitment to the fair and faster disposition of cases especially linked to the resolution process under IBC,” it added.
First Published: Jul 31 2023 | 11:46 AM IST