HNG: HNG promoter offers Rs 1,380 cr in cash, 10% equity to lenders

HNG: HNG promoter presents Rs 1,380 cr in money, 10% fairness to lenders

Mumbai: The promoter of the Mumbai publicly traded (HNG) has proposed ₹1,380 crore in money and 10% in fairness to lenders as a settlement in a last-ditch effort to finish chapter proceedings, two individuals who had been conscious of stated the event of ET.

The corporate has deposited practically ₹110 crore with lenders to point out its dedication to paying loans, the individuals stated. Kolkata-based HNG was admitted to insolvency proceedings on behalf of DBS Financial institution in October final 12 months. HNG has not responded to ET’s emailed query.

The promoter, Mukul

, has made the settlement supply underneath Part 12A of the Insolvency and Chapter Act (IBC). This provision offers tribunals the facility to withdraw an utility from insolvency proceedings if 90% of lenders agree.

The promoters have joined the settlement financing group, which includes their contribution of roughly ₹400 crore and funding of ₹1,000 crore. Edelweiss Asset Reconstruction Firm (ARC), which has traditionally acquired loans from , and HSBC, has a 23% stake in HNG’s debt.


, which has the very best publicity of 38%, is a powerful supporter of the 12A schedule. A draft report on the transaction audit, performed by BDO India, doesn’t give the corporate an excellent image,” stated a 3rd particular person accustomed to the matter.

In 2019, the promoters supplied ₹ 1,710 crore as a one-time settlement; final June, it issued a revised settlement supply of ₹1,400 crore. Each proposals failed, after which the Nationwide Firm Legislation Tribunal (NCLT) allowed the corporate to settle the excellent debt. The promoter was unable to fulfill the fee deadline in 2019, whereas talks with lenders collapsed final 12 months after some banks wished the next payout.

Decision skilled Girish Juneja, backed by EY, has admitted ₹3,338 crore in claims from monetary collectors. The promoter’s bid of ₹1,380 crore equates to a 41% restoration. If 10% fairness and one other ₹550 crore that lenders appropriated up to now two years are added to the settlement supply, the lenders’ restoration is about 60%.

Final month, the Supreme Courtroom ruling to permit the settlement of loans by Sivahankaran for Siva Industries inspired promoters to regain management of their corporations by submitting functions underneath applicable provisions of the legislation. Siva Industries additionally settled the case underneath IBC’s 12A.

HNG has obtained expressions of curiosity from

Chemical substances, the Danish beer maker Carlsberg and AGI Greenpac, previously often known as , a maker of sanitary merchandise. Kotak Particular Scenario Fund and two personal fairness funds – Oaktree Capital and Cerberus – have additionally submitted expressions of curiosity. Juneja has invited mounted presents for July 23.

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