Nearly 98% of lenders by value voted in favour of the plan presented by AGI Greenpac, earlier known as HSIL Ltd, while 88% of lenders voted for South Africa-based Madhvani Group‘s plan, which was also in the fray offering cash and equity to lenders, one of the persons said.
Nirma Chemicals, a third bidder in the fray, failed to receive over 66% votes, the minimum required to get a resolution plan approved by lenders under the Insolvency and Bankruptcy Code, the person cited above said.
Rajendra Somany owned AGI Greenpac offered Rs 1851 crore upfront and Rs 356 crore as deferred payment to lenders; and Rs 6 crore payment to employees and trade creditors to acquire a Kolkata-based company.
Madhvani Group offered Rs 1800 crore as upfront payment, 5% equity to lenders and Rs 50 crore to trade creditors.
Girish Juneja, the resolution professional backed by EY, had admitted Rs 3338 crore claims from financial creditors. AGI Greenpac’s Rs 2207 crore approved offer to financial creditors equates to a recovery of 66%.
In July, all three applicants submitted resolution plans to the RP followed by an auction held on September 15 among them to identify the highest bidder.
Stock exchange listed AGI Greenpac emerged as a higher bidder at an auction, as reported by ET on September 16. Nirma Chemicals quit the bidding process after participating in the second round.
AGI Greenpac has tied up Rs 1200 crore with a fund managed by Edelweiss to part-finance the acquisition of HNG, said one of the persons cited above.
Lenders would recover over Rs 2150 crore, which is much higher than the reserve price of Rs 1692 crore set for the auction and Rs 1380 crore staggered payment offer from the HNG promoter Mukul Somany under Section 12A of IBC.
This provision gives tribunals the power to withdraw an application from insolvency proceedings if 90% of lenders by value agree to the resolution plan.
RP and Edelweiss did not respond to ET’s request for comments.
In July, when the three bidders submitted resolution plans, Nirma Chemicals, makers of detergent soaps and cosmetics, had emerged as the highest bidder offering Rs 1650 crore, as reported by ET on July 29. AGI Greenpac offered 1800 crore while Madhvani Group had offered Rs 1500 crore in a combination of upfront and deferred payment.