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Hindustan Construction Company has transferred aggregate debt of INR 2,854 crore to its associate firm Prolific Resolution Pvt Ltd as part of a lender-backed restructuring plan. The move reduces HCC's consolidated debt exposure linked to corporate guarantees and supports long-term balance-sheet stability. Along with the debt, arbitration awards and claims worth INR 6,508 crore have also been shifted to PRPL. HCC will retain a 49% equity stake in the associate company and has provided a corporate guarantee for the transferred debt. The restructuring is aimed at improving financial transparency, strengthening lender confidence and enabling HCC to focus on infrastructure projects across sectors such as water, industrial development, buildings and power.
Hindustan Construction Company (HCC) has announced the transfer of an aggregate debt of INR 2,854 crore to its associate entity Prolific Resolution Pvt Ltd (PRPL), in a move aimed at easing the company's consolidated debt burden and improving long-term financial stability. The transaction forms part of a broader plan implemented in consultation with HCC's lenders and is intended to create greater value for the company's shareholders. Advertisement
In its statement, HCC indicated that shifting the liabilities to PRPL has resulted in a significant reduction of debt attributable to corporate guarantees earlier extended by HCC for loan facilities availed by its associate company. The company noted that, alongside the debt transfer, awards and claims amounting to INR 6,508 crore had also been moved to PRPL under the agreed structure.
HCC clarified that it continues to retain a 49 per cent equity stake in PRPL following the transaction, ensuring its continued strategic involvement in the associate's operations. Despite the transfer, the company has provided a corporate guarantee for the entirety of the debt owed by PRPL to its lenders, reflecting its ongoing commitment to the resolution structure and lender interests.
The restructuring aligns with HCC's broader focus on stabilising its balance sheet and enhancing its financial capacity to pursue infrastructure contracts across key sectors. The company remains active in project segments spanning water management, industrial development, buildings, and nuclear power infrastructure, areas where it continues to maintain a significant presence.
According to the company, the latest debt strategy is expected to streamline liabilities, improve transparency in account management, and reinforce confidence among financial institutions engaged with HCC. The development also forms part of the company's ongoing efforts to navigate legacy issues tied to arbitration awards, claims, and past project-related liabilities.
Source - PTI
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