HGIL lender shoots contempt of court notice to successful bidder INSCO

Exclusive Capital, one of the lenders of Hindusthan Glass and Industries Ltd (HGIL), has sent a contempt notice to Madhvani group-led INSCO for diverging from the original resolution plan submitted to the Supreme Court, documents accessed by Moneycontrol show.

In the notice dated June 23, Exclusive Capital alleged that despite the top court’s order to pay Rs 356 crore immediately, INSCO is suggesting staggered payment.

If the concerns are not addressed in 48 hours, it would move the Supreme Court against INSCO, the lender said. HGIL’s committee of creditors (COC) is likely to take up the matter on June 24, people privy to the development said. State Bank of India, Edelweiss and Life Insurance Corporation are among the key lenders of HGIL.

“A bare perusal of the Revised Resolution Plan clearly reveals that the upfront cash payment of Rs 356 crore, which was the minimum threshold required to match the commercial offer of AGI, is not being made in accordance with the Supreme Court’s directives. Instead, INSCO has structured the payment in a deferred, staggered or conditional manner, which defeats the very purpose of the court’s direction and substantially alters the undertaking given,” Exclusive Capital said in the legal notice, a copy of which has been reviewed by Moneycontrol.