Hindustan Construction Company (HCC) announced a significant reduction in its exposure to debt (arising from Corporate Guarantee) issued in connection with loan facilities of Prolific Resolution (PRPL), an associate company.
As part of its plan with lenders, HCC had transferred an aggregate debt of ~2.854 crore to PRPL along with ~6.508 crore of Awards & Claims, while retaining a 49% equity stake in the entity. The Company had also provided a corporate guarantee for 100% of the debt owed by PRPL to its lenders. With accrued interest, the total amount of PRPL debt along with Awards & Claims is currently ~3.935 crore and ~6.325 crore, respectively.
Following formal approvals from PRPL Lenders, its Board and relevant stakeholders, HCC's guarantee obligation has been reduced from 100% of the outstanding amount to ~571 crore, representing 20% of the principal amount transferred. The reduction is part of the Company's ongoing commitment to de-leverage its balance sheet, strengthen its investment grade rating and access capital markets for stronger future growth as it scales its operations.
This material event has paved the way for HCC to access larger credit facilities and raise equity capital, including the recently announced Rights Issue which is supported by HCC's Promoter Group. The revised guarantee framework has been executed today in coordination with lending institutions and is in compliance with applicable regulatory, legal, and governance requirements.
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Valued Customer,
BOB Capital Markets Limited (BOBCaps) is firmly committed to the safety of your wealth. We would like to bring to your notice certain precautions that you certainly must take against potential tele-fraudsters/ unscrupulous and unregistered portfolio managers:
ALWAYS AVOID
We would like to caution you against such fraudulent calls and SMSes and urge you to be alert. Follow the golden rule:
Do not share your Login Credentials or Passwords with anybody
BOBCaps employees / representatives never ask for your password.
Certain tele-fraudsters / unscrupulous and unregistered portfolio managers call customers or SMS them on the pretext of providing investment tips and lure them to invest through their bogus firms by promising huge profits.
Such deceitful callers ask the customer to share his/her login credentials with passwords to allow trading in their accounts, assuring huge returns.
Often trades done in the customer’s accounts are far from the best interest of the customers. Holdings of customers are often sold and with the funds, trades are then placed in illiquid securities at unrealistic prices.
At times, the holdings of customers are sold at prices detrimental to the customer. The so-called “portfolio manager” assures profits, which naturally does not materialize. Customers are deceived into providing access to their trading accounts, thereby allowing such fraudsters access to funds and securities available to execute trades, injurious to the customer’s interest.
In our continuous effort to keep you safeguard from the market related frauds and increase awareness while conducting trades, we request you to go through the Press Release issued by the NSE and would request you to ensure that you do not engage with the individuals and entities mentioned below: