ICICI-led lenders approve HCC recast of debt

In a breather to infrastructure major Hindustan Construction Company (HCC), which is reeling under interest cost and debt overhang, its lenders have approved restructuring of loans and infusion of an additional Rs1,500 crore.

The company, part of the Walchand Group, and led by industrialist Ajit Gulabchand, had built nearly 25 per cent of India's hydel power projects, 50 per cent of nuclear power generation capacities and more than 3,100 km of expressways and highways. The company is also the main promoter of the Lavasa hill city near Pune.

The lenders, led by a consortium of bankers, have also agreed to extend its loan tenure to 10 years. The restructuring of the loan and further infusion is under the corporate debt restructuring (CDR) scheme is certain conditions, including personal guarantees from the promoters and additional infusion of equity, according to various reports.

ICICI Bank is the lead bank, while lenders including Axis Bank, State Bank of India, IDBI, Punjab National Bank and Canara Bank among others are part of the consortium.

The CDR cell had met on Monday to approve HCC's debt recast package.

On Monday, shares in HCC closed up 1.28 per cent at Rs19.80 in a weak Mumbai market, after rising to more than 3 per cent in intra-day trading.