The Competition Commission of India (CCI) has put AGI Greenpac's acquisition proposal of Hindusthan National Glass & Industries (HNG) on hold.
AGI Greenpac’s acquisition of Kolkata-based HNG, India’s largest glass producer, has been delayed.
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%.
The company will submit the updated form by the end of this week.
HNG's committee of creditors (CoC) recently approved the plan of the company's acquisition by AGI Greenpac for Rs 2,213 crore.
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.
AGI Greenpac’s resolution proposal received 98% votes of the CoC, followed by 88% 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.
