Welding work at a under construction bridge in Kolkata, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

HCC’s Lenders Get 24.44% Of The Company’s Equity  

Mumbai-based Hindustan Construction Company Ltd. (HCC), approved issuing 25.19 crore shares to its lenders post the implementation of the Scheme for Sustainable Structuring of Stressed Assets (S4A), the company said in its filing to the exchanges.

The 25.19 crore shares, of face value of Re 1 each, represent 24.44 percent of the expanded share capital of the company.

The company will also issue Optionally Convertible Debentures (OCD) of face value of Rs 1,000 each, for an amount not exceeding Rs 2,000 crore

The management will seek shareholders approval for the same in an Extraordinary General Meeting (EGM) to be convened on January 5, 2017.

The Overseeing Committee (OC) as mandated by the RBI, had approved HCC’s scheme for S4A in November, this year.

Under S4A, about Rs 5,107 crore worth debt is proposed to be restructured. Out of this amount, Rs 2,681 crore (52.50 percent) would be considered as sustainable while the remaining Rs 2,426 crore would be treated as unsustainable.

HCC is also slated to receive Rs 2,000 crore from NHPC and the National Highways Authority of India (NHAI) within 4-6 weeks as an arbitration award.

Read: HCC To Get Arbitral Award Of Rs 2,000 Crore From NHPC, NHAI

Shares of HCC were trading lower by 0.61 percent at Rs 40.60 per share as of 1 p.m.