M&A
Lenders approve INSCO's Rs.2,257-Cr plan for Hindusthan Glass
A committee of creditors including State Bank of India, Edelweiss Asset Reconstruction Company and DBS Bank has cleared (with 96.16% of votes in favour) the revised resolution plan for Uganda-based Independent Sugar Corp (INSCO) for bankrupt Hindusthan National Glass (HNG).Under the Supreme Court-approved proposal, INSCO has improved its initial offer by INR 356-2,257 crore. INSCO has agreed to pay INR 1,901.5 crore upfront through a mix of equity, quasi-equity and debt. An additional deferred payment of INR 356.3 crore will be made to secured financial creditors over three years, funded from HNG's future cash flows.Secured financial creditors will get INR 2,207 crore, or 66.18% of their admitted claims of INR 3,335 crore. The INR 2,257 crore proposal also covers payment to operational creditors like employees. INSCO has proposed a strategy involving a INR 1,000 crore capital expenditure to turn around HNG's operations. The plan focuses on rebuilding furnaces and upgrading equipment to revive the largest container glass manufacturer.
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