Debt

Debt Financing

Hindustan Construction Co board approves debt resolution plan

BSE  

The board of Mumbai-based, publicly listed Hindustan Construction Co Ltd (HCC) has approved a debt resolution plan, under which HCC will transfer up to INR 4,000 crore of its liability to Prolific Resolution Pvt Ltd, a subsidiary company. It will also transfer its economic interest in awards of up to INR 2,749 crore and claims of up to INR 2,136 crore, both accounted for by the company, to Prolific. Similarly, it will transfer economic interest in awards & claims of up to INR 4,315 crore made by the company, which are yet to be accounted, to the subsidiary. The investor identified by HCC's lenders will acquire a 51% stake in the wholly owned subsidiary for INR 25 crore. Additionally, the investor will infuse INR 75 crore in Prolific Resolution in the form of priority debt. The return on this investment to the identified investor will be limited and capped to an agreed threshold, according to the resolution plan.