Kotak Mahindra Bank-backed Phoenix ARC Private Limited and Edelweiss Asset Reconstruction Company Limited are among half a dozen companies that have shown interest in acquiring State Bank of India (NSEI:SBIN)'s loan to Hindusthan National Glass & Industries Limited (BSE:515145), said people aware of the matter. Prudent Arc Limited, Uv Asset Reconstruction Company Limited and Omkara Assets Reconstruction Private Limited are some of the other entities that have submitted expressions of interest to SBI, the people cited earlier said. HNG, the country's largest glass bottle maker, was admitted for corporate insolvency in October 2021 on a petition by DBS Bank.

SBI, which filed a claim of INR 12.72 billion, has a 38% share in HNG's debt. ET had reported on January 19 that SBI has initiated talks with ARCs to sell the loan it had extended to HNG, as it saw an inordinate delay in the resolution of the company under the Insolvency and Bankruptcy Code process. Last month, SBI invited asset reconstruction companies (ARCs) to bid for the debt by January 31.

The country's largest bank has set a reserve price of INR 8.21 billion, according to the notice to ARCs. The bank will hold an auction on February 22. Senior executives of Edelweiss ARC confirmed the development.

Phoenix ARC and SBI did not respond to ET's request for comment. HNG has received resolution plans from AGI Greenpac and Madhvani Group. In October 2022, 98% of the lenders to HNG voted on a INR 22.13-billion plan by AGI Greenpac.

But the plan is yet to be approved by the National Company Law Tribunal as several litigations have been filed against the company. A recent report by rating company Crisil said that between March 2019 and September 2023, the average resolution time increased from 324 days to 653 days.