Infrastructure major HCC on Thursday announced the transfer of aggregate debt worth Rs 28.54 billion to its associate company, Prolific Resolution Pvt Ltd, as part of efforts to create value for shareholders and reduce balance sheet stress.

The move results in a significant reduction in HCC’s debt exposure arising from corporate guarantees issued in connection with loan facilities availed by Prolific Resolution. In a statement, the company said that under its plan agreed with lenders, HCC transferred debt of Rs 28.54 billion to the associate entity along with awards and claims valued at Rs 65.08 billion, while retaining a 49 per cent equity stake in Prolific Resolution.

HCC added that it has also extended a corporate guarantee covering 100 per cent of the debt owed by Prolific Resolution to its lenders, in line with the agreed restructuring framework. The company said the transaction is expected to improve its financial position by lowering contingent liabilities linked to guarantees.

HCC operates across key infrastructure segments including water, industrial projects, buildings and nuclear power, and continues to focus on strengthening its balance sheet amid a challenging operating environment.