NCLT approves Rs 2,072-cr resolution plan for Hindustan National Glass

The National Company Law Tribunal (NCLT) has officially approved a resolution plan for Hindustan National Glass & Industries Limited (HNGIL) valued at ₹2,071.50 crores, a significant development in the company’s insolvency proceedings. The resolution amount will be distributed among various creditors, with a substantial portion allocated to financial creditors.

The NCLT’s approval of the resolution plan, submitted by Independent Sugar Corporation Limited (INSCO), marks a key moment in the case initiated by DBS Bank Limited in October 2021. The plan received overwhelming support from the Committee of Creditors (CoC), with a 96.16% majority vote.

The resolution amount of ₹2,071.50 crores is distributed as follows:

• Financial Creditors: The majority of the funds, ₹1,970 crores, will be paid to financial creditors. This represents approximately 52% of their total admitted claim of ₹3,785.5 crores.
• Operational Creditors: These creditors will receive ₹33 crores, a payment of just 2.45% of their total admitted claims.
• Workmen and Employees: A sum of ₹25.5 crores has been allocated for workmen and employees, representing a 100% payment of their admitted dues.
• Other Stakeholders: The remaining amount will cover other costs, including ₹11 crores for the liquidation process, ₹20 crores for the corporate insolvency resolution process (CIRP) costs, and ₹12 crores for a capital expenditure infusion.

This decision comes after an initial resolution plan by AGI Greenpac Limited was rejected by the Supreme Court on January 29, 2025, for failing to secure approval from the Competition Commission of India (CCI). The court’s decision paved the way for the CoC to reconsider INSCO’s bid.

HNGIL, a public limited company founded in 1946, is one of India’s leading container glass manufacturers with seven plants nationwide. The admitted financial debt of the company was ₹3,785.5 crores at the time the insolvency proceedings began.

A separate application is still pending before the NCLT to recover an alleged ₹63 crores from the former management following a transaction audit. The fair value of HNGIL was determined to be ₹3,155.16 crores, with a liquidation value of ₹1,977.47 crores.

Independent Sugar Corporation Limited (INSCO) is a Uganda-based multinational company that is part of the Madhvani Group. While its name suggests a focus on sugar, it is engaged in various business activities, including providing strategic guidance on sustainable modern technologies for agriculture and irrigation, as well as corporate and financial management. The acquisition of Hindustan National Glass & Industries Limited (HNGIL) marks the company’s strategic entry into the Indian manufacturing sector, specifically the container glass market, where it has no prior presence. As a result, the acquisition was approved under the “green channel” by the Competition Commission of India (CCI) as it did not pose any risk of an “appreciable adverse effect on competition.”

Also Read: SC upholds prior CCI approval mandate in HNGIL CIRP; quashes AGI Greenpac’s resolution plan