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Hindustan Construction Co. Ltd. Capital/Financing Update 2021
61640_rns_2021-05-28_eac04a39-5176-43a8-9bae-37acf30d8e2d.pdf
Capital/Financing Update
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28 May 2021
| BSE Limited | |
|---|---|
| The Corporate Relationship Dept, | Exchange Plaza, |
| 1st Floor, Phiroze Jeejeebhoy Towers, | Bandra-Kurla Complex, |
| Dalal Street, | Bandra (East), |
| Mumbai-400 001. | Mumbai-400 051. |
| Scrip Code - 500185 | - Scrip Code HCC |
Dear Sir,
Sub: Announcement under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") - Debt Resolution Plan
In accordance with the provisions of Regulation 30 read with Para A (9) of Part A of Schedule Ill of the SEBI Listing Regulations, we wish to inform you that the Board of Directors of the Company has in its Meeting held on May 27, 2021, subject to necessary applicable statutes and regulations and requisite approvals, consents and clearances, including from the Bankers, Financial Institutions or other statutory authorities and subject to approval of the Shareholders of the Company, approved the Debt Resolution Plan (RP).
The salient features of the RP are given below:
The Company will transfer the following to Prolific Resolution Pvt. Ltd., a wholly owned subsidiary of the Company:
- a. Up to Rs.4,000 Crore of liability;
- b. Economic interest in (i) awards of up to Rs.2,749 Crore and (ii) claims of up to Rs.2,136 Crore, both accounted by the Company as per method of accounting regularly employed.
- c. Economic interest in awards & claims of up to Rs.4,315 Crores made by the Company, however, yet to be accounted.
The amount identified above will be initially novatedlassigned by the Company to Prolific Resolution Pvt. Ltd. The final amount of debt along with awards and claims to be assigned will depend on when precisely the RP will close, as the debt amount to be cawed out will include all overdues till the date of implementation of RP.
i) The investor identified by lenders will acquire 51% stake in this wholly owned subsidiary for a consideration of Rs.25 Crore. Additionally, the Investor will also infuse Rs.75 Crore in Prolific Resolution Pvt. Ltd. in the form of Priority Debt. The return on this investment to the identified investor will be limited and capped to an agreed threshold.
ii) Thc Company's Corporate Guarantee to lenders of Prolific Resolution Pvt. Ltd. will be limited to 20% of the debt transferred i.e. up to a maximum upto Rs.800 Crore.
The Board has also approved convening of an Extra Ordinary General Meeting of the Company on Tuesday, June 29, 2021 at 11.00 a.m. through Video Conferencing ("VC")/Other Audio-Visual Means ("OAVM") to seek necessary approvals in this regard.
The Notice of the same shall be submitted in due course.
This is for your information and record.
Thanking you,
Yours faithfully, For Hindustan Construction Company Ltd.
Vitha I.P. ;;:y~;::;::y Date 2021 "5 28Kulkarni 773322+os3v Vithal.P. Kulkarni Digitally signed by Vithal.P.Kulkarni Date: 2021.05.28 11:33:22 +05'30'
Vithal P. Kulkarni Company Secretary