Hindustan Construction completes debt resolution plan
Real Estate

Hindustan Construction completes debt resolution plan

Hindustan Construction Company (HCC) has completed its debt resolution plan, duly supported by 23 banks. The resolution plan has carved out a significant portion of HCC’s debt along with commensurate assets from its balance sheet.

Under this debt resolution plan, HCC has transferred Rs 28.54 billion of lenders’ liability along with beneficial economic interest in arbitration awards and claims of Rs 65.08 billion as consideration to a special purpose vehicle. This SPV will have an external investor controlling at least 51% stake and HCC holding the rest.

The SPV's debt is significantly over-collateralised and is expected to be fully serviced from its own receivables, said a company statement. The underlying arbitration awards also carry interest (income), which comfortably covers any accrued interest on SPV debt.

Upon repayment of SPV liabilities, HCC will in fact have the right to receive surplus cashflows as a separate transaction, from realisation of awards and claims (expected to be of significant value).

Arjun Dhawan, Vice Chairman, HCC, said, “This milestone gives us the freedom to focus on building our business with renewed confidence, by addressing a fundamental legacy issue relating to delayed arbitration payments."

See also:
DB Realty looks to sell Mumbai land
Maharashtra cancels redevelopment GRs for Mhada buildings


Hindustan Construction Company (HCC) has completed its debt resolution plan, duly supported by 23 banks. The resolution plan has carved out a significant portion of HCC’s debt along with commensurate assets from its balance sheet. Under this debt resolution plan, HCC has transferred Rs 28.54 billion of lenders’ liability along with beneficial economic interest in arbitration awards and claims of Rs 65.08 billion as consideration to a special purpose vehicle. This SPV will have an external investor controlling at least 51% stake and HCC holding the rest. The SPV's debt is significantly over-collateralised and is expected to be fully serviced from its own receivables, said a company statement. The underlying arbitration awards also carry interest (income), which comfortably covers any accrued interest on SPV debt. Upon repayment of SPV liabilities, HCC will in fact have the right to receive surplus cashflows as a separate transaction, from realisation of awards and claims (expected to be of significant value). Arjun Dhawan, Vice Chairman, HCC, said, “This milestone gives us the freedom to focus on building our business with renewed confidence, by addressing a fundamental legacy issue relating to delayed arbitration payments. See also: DB Realty looks to sell Mumbai landMaharashtra cancels redevelopment GRs for Mhada buildings

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code