INSCO, backed by the Madhvani Group, has submitted a ₹2,752 crore resolution plan for Hindusthan Glass & Industries Ltd (HGIL), India’s largest container glass manufacturer. The offer, dated June 8, comes after a push from the Supreme Court, which had earlier rejected a higher bid by AGI Greenpac due to missing regulatory approval.
Now, creditors will vote today, June 12, on whether to approve INSCO’s proposal, which includes ₹2,200 crore in upfront cash and ₹550 crore via equity infusion.
What’s in it for everyone?
If approved, this deal could bring HGIL—currently deep in insolvency due to ₹3,012 crore in unpaid loans—back from the brink. That means:
- Thousands of jobs might be saved.
- India keeps its biggest glass producer alive.
- Lenders might finally recover a large chunk of their money.
But not everyone’s raising a toast yet.
The Catch: The Funding Fog
INSCO claims it has signed a non-binding agreement with US-based Cerberus Capital for bridge financing. But that’s exactly the issue—non-binding. Some creditors are skeptical, calling the funding plan “speculative at best and misleading at worst.” After all, you don’t buy a ₹2,752 crore asset on good vibes and a handshake.
A senior lender told Moneycontrol that the promised ₹1,550 crore through non-convertible debentures doesn’t feel solid without proper documentation.
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A Twist Only SC Could Script
AGI Greenpac had originally won the bid with the same ₹2,752 crore offer. But the Supreme Court threw that out because AGI lacked CCI approval. That opened the door for INSCO—the runner-up with a lower ₹1,850 crore offer. The court, focused on maximizing creditor returns, nudged INSCO to match AGI’s amount. INSCO agreed.
So now, we’re back at ₹2,752 crore—but with a different buyer and a lot more paperwork under the scanner.
The Cost of Revival
INSCO’s plan isn’t just about buying HGIL—it’s also about rebuilding it. The company estimates it will need ₹1,000 crore in capital expenditure over the next few years to fix old furnaces, upgrade equipment, and stabilize operations. The past decade hasn’t been kind to HGIL, with crumbling assets, high staff churn, and worker strikes.
It’s a turnaround job—and not an easy one.
What Happens Next?
If the Committee of Creditors (CoC) gives a green signal today, HGIL might finally get a lifeline after nearly three years in insolvency limbo.
If not? Well, it’s back to the drawing board. Again.
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