Hindustan Construction Company Board approves debt resolution plan

The board of Hindustan Construction Company Limited (HCC Limited) has approved a debt resolution plan in a bid to reduce the firm’s debt, worth over Rs 100 billion. The plan will be subject to necessary further approvals. Under the plan, HCC Limited will transfer up to Rs 40 billion worth of liability to its subsidiary Prolific Resolution Private Limited. It will also transfer the “economic interest”, that is, awards of up to Rs 27.49 billion and claims of up to Rs 21.36 billion, to the arm. The investor, identified by lenders, will acquire a 51 per cent stake in the subsidiary for Rs 250 million. Moreover, HCC’s corporate guarantee to lenders of Prolific Resolution will be limited to 20 per cent of the debt transferred or a maximum of Rs 8 billion. In March 2021, the firm’s infrastructure development arm, HCC Concessions Limited, concluded its conciliation with NHAI.

GET ACCESS TO OUR ARTICLES

Enter your email address