Kotak Mahindra Bank-backed Phoenix ARC and Edelweiss Asset Reconstruction Company are among half a dozen companies that have shown interest in acquiring State Bank of India’s loan to Hindusthan National Glass (HNG), said people aware of the matter. Prudent ARC, UV ARC and Omkara ARC are some of the other entities that have submitted expressions of interest to SBI, the people cited earlier said.
HNG, the country’s largest glass bottle maker, was admitted for corporate insolvency in October 2021 on a petition by DBS Bank. SBI, which filed a claim of Rs 1,272 crore, has a 38% share in HNG’s debt.
ET had reported on January 19 that SBI has initiated talks with ARCs to sell the loan it had extended to HNG, as it saw an inordinate delay in the resolution of the company under the Insolvency and Bankruptcy Code process. Last month, SBI invited asset reconstruction companies (ARCs) to bid for the debt by January 31.
The country’s largest bank has set a reserve price of Rs 821 crore, according to the notice to ARCs. The bank will hold an auction on February 22. Senior executives of Edelweiss ARC confirmed the development.
Phoenix ARC and SBI did not respond to ET’s request for comment.
HNG has received resolution plans from AGI Greenpac and Madhvani Group. In October 2022, 98% of the lenders to HNG voted on a Rs 2,213-crore plan by AGI Greenpac. But the plan is yet to be approved by the National Company Law Tribunal as several litigations have been filed against the company.
A recent report by rating company Crisil said that between March 2019 and September 2023, the average resolution time increased from 324 days to 653 days.
The Insolvency and Bankruptcy Code (IBC) stipulates that a resolution should be concluded in 330 days, failing which the company will be liquidated.
Girish Juneja, the EY-backed resolution professional, admitted Rs 3,785 crore in claims, of which Rs 3,335 crore are from secured financial creditors. AGI Greenpac has offered Rs 2,207 crore to secured financial creditors, which would be a recovery of 66%.
