HCC becomes first company to go for debt restructuring under S4A scheme
It said, “The board has approved issuance of nearly 25.20 crore equity shares of HCC – which represents 24.44% of the expanded share capital of the company, along with optionally convertible debentures (OCDs) not exceeding Rs 2000 crore on preferential basis to the lenders.”
![HCC becomes first company to go for debt restructuring under S4A scheme HCC becomes first company to go for debt restructuring under S4A scheme](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_850x478/public/2016/12/02/10396-investment-pixabay1.jpg?itok=BuZqhTex&c=25be1d5822a150983804cec11b93525f)
Hindustan Construction Company (HCC) on Friday said that its board has approved to get its debt restructured under the Reserve Bank of India’s (RBI) scheme for sustainable structuring of stressed assets (S4A).
It said, “The board has approved issuance of nearly 25.20 crore equity shares of HCC – which represents 24.44% of the expanded share capital of the company, along with optionally convertible debentures (OCDs) not exceeding Rs 2000 crore on preferential basis to the lenders.”
HCC would become the first company to get its debt restructured under the S4A scheme.
S4A scheme is one of RBI move to curb the problem 'loans' of large projects at a sufficiently early stage and protect interest of lenders.
Apart from this, HCC board also approved Rs 2100 crore in bank guarantee (BG) limits for release of arbitral award amount as per Cabinet committee on Economic Affairs (CCEA) move on reviving construction sector.
Prime Minister Narendra Modi on August 31, 2016 had announced various measures to revive the construction sector which has been undergoing stress. Under which it directed government agencies to pay 75% of the arbitral award amount against margin free bank guarantee.
HCC has arbitration award of Rs 3427 crore as of September 30, 2016. About Rs 4173 crore of arbitration are also in process.
After the announcement, the shares of HCC surged to Rs 41.35 per share on BSE. However, at 2.19pm, the shares of HCC crashed by 0.49%, trading at Rs 40.80 per shares.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
03:04 PM IST