Hindustan Construction Company announced that the company's lenders have on 10 January 2020 initiated a carve-out of Rs 2100 crore debt to a third-party-controlled SPV along with certain arbitration awards and claims in a move that will significantly deleverage the company and address its assets-liabilities mismatch.

The debt - along with receivables comprising approximately an award cover of 1.0x and claims under arbitration of 1.5x will move to an SPV controlled by a new investor. The tenure of the debt at the SPV will be up to 10 years and repayments from the proceeds of the Awards will yield an IRR higher than current yields offered by HCC.

The debt-asset carve-out, which will be in the nature of a slump sale, is subject to lenders' final approvals. Lenders aim to seek their internal approvals and target to close the transaction prior to 31 March 2020. The Company will also seek the requisite corporate approvals for the transaction.

Pursuant to the debt carve-out, HCC's balance sheet will stand significantly deleveraged with no debt servicing obligations expected for the next 33 months. HCC will continue to work to realize its underlying assets to further improve its credit profile, allowing it to more substantively participate in India's infrastructure roll-out program.

Powered by Capital Market - Live News

HCC on Tuesday stated that current outstanding borrowings stood at Rs 3171.45 crore. The company's total financial indebtedness stands at Rs 10,391 crore as on date.

Separately on Tuesday, the company announced receiving a contract worth Rs 489 crore from Delhi Metro Rail Corporation for designing and constructing 2.03-km long twin tunnels on the Janakpuri West to R.K. Ashram corridor (Extension of Line 8) of Phase IV.

HCC's businesses span the sectors of engineering & construction, real estate, infrastructure, urban development & management.

On consolidated basis, the company reported a net loss of Rs 233.71 crore in Q2 September 2019 as against a net profit of Rs 473.7 crore in Q2 September 2018.

Powered by Capital Market - Live News

A joint venture of Hindustan Construction Company and VCCL has received a contract worth Rs.489 crore from Delhi Metro Rail Corporation under Phase IV of the Delhi Metro project. HCC's share in the JV is 75% (i.e. Rs.367 crore). The work is expected to be completed in three years.

The contract is for design and construction of 2.03-km long twin tunnels on the Janakpuri West to R.K. Ashram corridor (Extension of Line 8) of Phase IV. The twin tunnels will be constructed using Shield Tunnel Boring Machines. The contract also includes the construction of an underground station, namely Krishna Park Extension.

HCC completed the 1.54-km long CC66 package of DMRC on Dwarka-Najafgarh Corridor in October 2019. This was the sixth DMRC contract successfully completed by the company. HCC has been a leading participant in all three prior phases of the Delhi Metro project.

Powered by Capital Market - Live News

HCC said its share in the joint venture (JV) is 75% (Rs 367 crore). The work is expected to be completed in three years.

The contract is for design and construction of 2.03-km long twin tunnels on the Janakpuri West to R.K. Ashram corridor (Extension of Line 8) of Phase IV. The twin tunnels will be constructed using shield tunnel boring machines. The contract also includes the construction of an underground station, namely Krishna Park Extension. The announcement was made during trading hours today, 7 January 2019.

HCC's businesses span the sectors of engineering & construction, real estate, infrastructure, urban development & management.

On consolidated basis, the company reported a net loss of Rs 233.71 crore in Q2 September 2019 as against a net profit of Rs 473.7 crore in Q2 September 2018.

Powered by Capital Market - Live News