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HCC Slashes Debt Guarantee by ₹3,364 Crore
12 Dec
Summary
- HCC reduced its corporate guarantee to PRPL by ₹3,364 crore.
- This move is part of a long-term balance sheet restructuring.
- HCC previously transferred debt and claims to PRPL.
Hindustan Construction Company (HCC) has recently announced a substantial ₹3,364 crore reduction in its corporate guarantee extended to Prolific Resolution Private Limited (PRPL). This strategic financial maneuver is a key development in HCC's comprehensive balance sheet restructuring initiative, which has been underway since September 2022.
The company had previously transferred ₹2,854 crore of debt and ₹6,508 crore in awards and claims to PRPL. As part of these earlier arrangements, HCC maintained a 49 percent equity interest in PRPL. Additionally, HCC had committed to a corporate guarantee covering the entirety of PRPL's outstanding debt.
This latest reduction in the corporate guarantee signals further progress in HCC's efforts to streamline its financial obligations and strengthen its balance sheet. The ongoing restructuring aims to enhance the company's financial stability and operational efficiency in the long term.
