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Board of Hindustan Construction Company approves restructuring of debt under S4A scheme

Capital Market 

At meeting held on 2 December 2016

Company approved the issuance of equity shares as well as optionally convertible debentures to lenders under RBI's S4A scheme.

The Board of Directors of the Company at its meeting held on 02 December 2016 approved the issuance of 25,19,92,670 equity shares of the company of face value of Re 1 each, representing 24.44% of the expanded share capital of the company and such optionally convertible debentures of face value of Rs 1000 each not exceeding Rs 2000 crore on preferential basis, to the Lenders.

The Board has decided to convene EGM on 05 January 2017 for seeking shareholders approval for the above matter.

HCC is the first company to get debt restructured under the S4A scheme.

The Board also approved Rs 2100 crore Bank Guarantee limits for release of arbitral awards amount as per CCEA approval for revival of the construction sector directing the government agencies to pay 75% of the arbitral award against margin free bank guarantee.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 02 2016. 13:37 IST