Hindustan Construction Company (HCC) has informed the exchanges about a reduction in its corporate guarantee extended to its associate company, Prolific Resolution Private Limited (PRPL). The company stated that approvals from lead banks ICICI Bank and State Bank of India (SBI) have been secured to reduce the corporate guarantee from 100% of the debt at carve-out to 20%, effectively limiting HCC’s exposure to PRPL’s debt to Rs 571 crore.
This development follows the consortium lenders’ meeting held on October 4, 2024, where the proposal was approved in principle. ICICI Bank and SBI together account for 26.5% of PRPL’s total debt, with approvals from other lenders expected shortly.
This step significantly reduces HCC’s financial liabilities related to PRPL, potentially improving the company’s overall financial position and supporting its efforts to streamline liabilities while maintaining its support for associate operations.
