Hindustan National Glass may find buyers in Carlsberg , Nirma, Oaktree: Report

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Several organisations have expressed interest in acquiring Hindusthan National Glass Industries (HNG) that makes alcoholic beverages bottles, including Danish beer maker Carlsberg, private equity fund Oaktree Capital, Nirma Chemicals, and SNJ Distilleries, according to people familiar with the matter, the Economic Times reported.

In addition, listed AGI Greenpac, formerly known as HSIL Ltd, maker of sanitaryware products, sent an expression of interest to Kolkata-based HNG, the people said. The founder of HNG, Mukul Somany, is related to the founder of AGI Greenpac, promoted by another Somany family.

These applicants include Kotak Special Situations Fund, Jindal Power, and United Biotech, the people said. Lotus One Investment, an affiliate of Carlsberg, also submitted a bid.

According to one of the people cited above, at a committee of creditors meeting last week, HNG lenders rejected a one-time settlement (OTS) of Rs 1,250-1,300 crore offered by the promoter. Insolvency can be exited by a company if 90 percent of its creditors are in agreement. 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," a third person involved in the resolution of HNG told the Economic Times.

Girish Juneja, a resolution professional, backed by EY, has admitted to accepting Rs 3,328 crore claims from financial creditors. According to the same person, Nirma, SNJ, and Carlsberg are the top contenders to acquire HNG's assets. The lenders expect offers in the range of Rs 1,500-1,600 crore - which implies a 50 per cent recovery on the claim amount, the report added.

The company attempted to settle the loans several times since 2018, but the negotiations did not progress because the promoter could not raise funds, said the people cited above. HNG offered a settlement of Rs 1,400 crore over 10 years and the conversion of a loan of Rs 500 crore to equity a year ago. However, the settlement offer was not unanimously approved - a precondition to the deal. Edelweiss ARC, which holds 21 per cent of the debt, rejected the proposal claiming it to be below expectation, as per the report.

Carlsberg's OTS failed to get approval from the Competition Commission of India in 2019 and could not be completed. HNG was admitted for insolvency proceedings in October 2021 based on an application filed by DBS Bank. HNG's creditors include State Bank of India, Canara Bank, Bank of Baroda, Standard Chartered Bank, Life Insurance Corporation, Export-Import Bank of India, Edelweiss ARC, Goldman Sachs International Bank and Rathi Brothers, it added.