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HNG shares hit upper circuit as employees reach out to CoC for speedy resolution

New Delhi: Forward of its acquisition by AGI Greenpac, workers working on the (HNG) have reached out to the Committee of Collectors (CoC) relating to the

pending insolvency course of.

The workforce of considered one of India’s oldest glass-making corporations has written to the CoC, led by a consortium of banks, about how an ageing glass-melting furnace plant might influence the protection of hundreds of employees.

A furnace is a huge heater that melts uncooked materials for making glass. Every day, 600,000 food-grade bottles produced by HNG in Puducherry. The corporate provides containers to the beverage, meals and pharma industries.

The letter to CoC highlights that it accepted the bidder, however with no approval from the competitors fee of India (CCI), it fears a delay of the insolvency decision. A CCI approval is required earlier than a decision plan is finalised.

On Wednesday, HNG zoomed 5%, hitting its each day circuit restrict, to Rs 9.30. The scrip has jumped greater than 10% within the final week.

The letter states that the plant was rebuilt in 2004, with an anticipated lifetime of 10-12 years, and the brand new homeowners or the buying entity would require extra funds within the furnace to make it financially viable.

“The present situation of the furnace could be very poor, and it’s at an imminent threat of failure. The furnace was designed in 2004 to final for 10-12 years, mentioned the letter from workers to CoC learn.

Of their letter, they requested the insolvency course of to be accomplished on the earliest and for brand spanking new administration to contemplate rebuilding the furnace on precedence.

HNG’s insolvency decision began in January this 12 months however bumped into an issue after CoC chosen AGI Greenpac as a bidder with no CCI approval. No deadline was set for the bidder to get CCI approval.

The CoC transfer and the decision skilled has been challenged on the Kolkata bench of the Nationwide Firm Regulation Tribunal (NCLT).

“We’re involved in regards to the potential directives from CCI to the at the moment accepted bidder asking to divest a couple of crops for assembly market share norms. It could influence the Puducherry plant and its workers,” the letter states.

(Disclaimer: Suggestions, ideas, views, and opinions given by the specialists are their very own. These don’t characterize the views of Financial Occasions)

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