The Competition Commission of India (CCI) put AGI Greenpac’s acquisition proposal of Kolkata-based Hindusthan National Glass & Industries Ltd (HNG) on hold, just days after the committee of creditors (CoC) showed a green light to the proposed resolution plan.
On the CCI website, the notice filed by AGI Greenpac on September 27 regarding the acquisition, has been marked as ‘Notice Not Valid’.
CCI has invalidated Form 1 filed by AGI Greenpac and has asked the company to file Form 2 with more details. Form 2 is sought when the market share of the company is more than 15 per cent.
Sources told Business Standard that the company will submit the updated form by the end of this week.
On Thursday, HNG’s CoC approved the plan of the company’s acquisition by AGI Greenpac for Rs 2,213 crore. HNG is India’s largest container glass maker.
HNG owes Rs 1,710 crore to a group of 12 creditors, led by the State Bank of India (SBI). The insolvency proceedings were initiated in October 2021 by DBS Bank which has an exposure of Rs 468 crore. The Life Insurance Corporation (LIC) and EXIM Bank are also among the creditors.
Earlier, AGI Greenpac was known as Hindusthan Sanitaryware & Industry Ltd. Its resolution proposal got 98 per cent votes of the CoC, followed by 88 per cent to the Uganda-based Madhwani group.
AGI Greenpac offered Rs 1,851 crore upfront and Rs 365 crore in the form of deferred payments to the lenders. Rs six crore was proposed to be paid to the employees of HNG.
The plan was given a go-ahead by SBI, Edelweiss, DBS, LIC and other important CoC members. Edelweiss Group agreed to provide $133.6 million to support AGI’s resolution plan.
