New Delhi : Glass maker Hindusthan National Glass & Industries Ltd (HNGIL), which emerged from insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), has escalated its dispute with Bira 91 maker B9 Beverages by claiming dues of over Rs 11 crore and warning of civil and criminal action over alleged non-lifting of customised bottles manufactured during its Corporate Insolvency Resolution Process (CIRP).
In a fresh communication sent to B9 Beverages’ board and copied to major investors including Peak XV, Sofina, BlackRock, Kirin Holdings and others, HNGIL alleged that more than 51 lakh customised glass bottles worth over Rs 7 crore continue to remain at its facilities despite repeated assurances from the beer maker.
The company claimed total outstanding dues, including interest, storage and mould charges, have now risen to Rs 11.19 crore.
The latest development follows a legal notice issued by HNGIL last month seeking recovery of more than Rs 8 crore from B9 Beverages over alleged payment and contractual defaults.
According to the latest notice, HNGIL said the transactions were undertaken while the company was undergoing CIRP under the IBC and that B9 Beverages was fully aware of the insolvency proceedings but continued placing purchase orders backed by bank guarantees.
HNGIL alleged that despite encashing bank guarantees worth Rs 3.91 crore, substantial dues remain outstanding and the brewer has failed to lift about 51.42 lakh customised bottles manufactured exclusively for it.
The glassmaker has sought payment of Rs 11.19 crore within 15 days and demanded a binding schedule for lifting the stock, failing which it said it would initiate legal proceedings. The company further alleged that B9 Beverages had acknowledged certain pending transactions and committed to payments and stock lifting schedules during the course of discussions, but failed to fulfil those commitments.
According to HNGIL, the unlifted stock has blocked working capital and warehouse capacity, while resulting in additional storage and handling costs.
B9 Beverages, which markets beer under the Bira 91 brand, has faced financial and operational challenges over the past year amid a broader slowdown in the craft beer segment. The company has undertaken restructuring measures, management changes and efforts to raise fresh capital while working to address obligations towards vendors and suppliers.
HNGIL exited the IBC process last year after a consortium led by Uganda-based Madhvani Group’s INSCO successfully implemented a resolution plan for the company, bringing to an end a multi-year insolvency proceeding. The company has since focused on operational revival and improving financial performance.
