Hindusthan National Glass & Industries Limited (HNGIL) has announced significant developments in its corporate restructuring process. The company's Monitoring Committee has approved several key measures as part of the ongoing acquisition by Independent Sugar Corporation Limited (INSCO).

Capital Reduction and Share Capital Increase

The Monitoring Committee has authorized the filing for standalone capital reduction with statutory authorities. This move is a crucial step in restructuring the company's financial position. Additionally, the committee has approved an increase in the company's authorized share capital from Rs. 511.50 crores to Rs. 1,000.00 crores. This substantial increase provides HNGIL with greater flexibility in its financial structure.

Memorandum of Association Changes

In line with the increase in authorized share capital, the committee has also approved consequent alterations to the company's Memorandum of Association. These changes are necessary to reflect the new capital structure of the company.

Alignment with NCLT-Approved Resolution Plan

These decisions align with the resolution plan approved by the National Company Law Tribunal (NCLT) for INSCO's acquisition of HNGIL under the Corporate Insolvency Resolution Process (CIRP). The CIRP, conducted under the Insolvency and Bankruptcy Code, 2016, culminated in the NCLT's approval of INSCO's resolution plan on August 14.

ISIN Suspension and Record Date

As part of the acquisition process, HNGIL has set September 18 as the record date for suspending its existing International Securities Identification Number (ISIN) INE952A01022. This suspension is a critical step in implementing the approved resolution plan and facilitating the acquisition by INSCO.

Implications for Shareholders

The capital reduction, increase in authorized share capital, and ISIN suspension are likely to have significant implications for HNGIL's shareholders. These changes indicate a substantial restructuring of the company's share structure and ownership. Shareholders are advised to closely monitor further announcements from the company regarding any actions they may need to take.

Company Listing Information

HNGIL's shares are listed on the following exchanges:

Stakeholders and investors should stay informed about additional announcements from the company or regulatory bodies regarding the ongoing acquisition process and its implications for HNGIL's future operations and share structure.

The National Company Law Appellate Tribunal (NCLAT) has refused to stay the National Company Law Tribunal's (NCLT) order approving the resolution plan for Hindustan National Glass & Industries Ltd (HNG). This decision comes despite appeals from various parties, including AGI Greenpac Ltd, Mukul Somany, Exclusive Capital Ltd, and operational creditor Soneko.

Resolution Plan Details

The approved resolution plan, submitted by Independent Sugar Corporation Ltd, involves a total investment of ₹2,250.00 crore. The key components of the plan include:

• ₹1,900.00 crore as upfront cash payment
• ₹350.00 crore deferred over a 3-year period
• 5% equity to be given to creditors

The Committee of Creditors had previously approved this plan with a significant majority of 96.16%.

NCLAT's Decision and Next Steps

While declining to stay the NCLT's order, the NCLAT has taken the following actions:

1. Issued notices to the respondents
2. Set a three-week deadline for replies
3. Scheduled the next hearing for October 9

It's worth noting that the NCLT's approval of the resolution plan was in line with directions from the Supreme Court.

Ongoing Implementation

Despite the pending appeals, the implementation of the resolution plan continues during the 45-day Monitoring Phase. The successful applicant remains bound by the obligations outlined in the plan, subject to the outcomes of the ongoing appeals.

This case highlights the complex nature of corporate resolution processes and the various stakeholders involved. As the situation develops, it will be crucial to monitor the NCLAT proceedings and their potential impact on HNG's future.