Carlsberg, Nirma, PEs in race for bottlemaker HNG

Danish beer maker Carlsberg, private equity funds Oaktree Capital and Cerberus, Nirma Chemicals and SNJ Distilleries are among a dozen entities that have shown interest in acquiring the bankrupt 

Hindusthan National Glass NSE -3.78 % Industries (HNG) that makes alcoholic beverages bottles, said two people with knowledge of the matter.

Kolkata-based HNG also received EoI from listed AGI Greenpac, formerly known as 

HSIL Ltd NSE 3.46 %, makers of sanitaryware products, the people said. Mukul Somany, promoter of HNG , is related to the founder of AGI Greenpac, promoted by another 

Somany NSE 2.09 % family.

Kotak Special Situations Fund, Jindal Power and United Biotech are among other applicants who have submitted EoIs .

At a committee of creditors meeting last week, HNG lenders rejected a ₹1,250-1,300 crore one-time settlement (OTS) offered by the promoter, one of the persons cited above said. A company can exit insolvency only if 90% of creditors by value agree. Promoter Somany is in talks with an Edelweiss-linked entity to fund their OTS, the same person said.

“Lenders decided to invite firm bids to gauge if the promoter’s offer is better than the applicants,” said a third person involved in the resolution of HNG. The resolution professional Girish Juneja, backed by EY, has admitted ₹3,328 crore claims from financial creditors. Nirma, SNJ and Carlsberg are expected to be the front runners for HNG’s assets, the same person said. Lenders expect offers in the range of ₹1,500-1,600 crore – implying a 50% recovery on the claim amount.

Since 2018, the company has made several attempts to settle the loans, but the negotiations did not progress due to the promoter’s inability to tie up funds, said the people cited above. In its latest attempt a year ago, HNG offered a ₹1,400 crore settlement over ten years and a conversion of a ₹500 crore loan into equity. However, the settlement offer was not unanimously approved – a precondition to the deal. 

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