HCC spurts of invoking SDR

HCC rose almost 7.5% in the afternoon session to Rs35.15 and continues to hover around the same levels. Its 52-week high and low stands at Rs.48 and Rs.29 respectively.

The stock has spiked after the bankers invoked the SDR scheme for its Lavasa project to resolve the stressed debt situation.

The total debt which is to be restructured is around Rs.3000 crore. Under SDR, some portion of the debt will get converted into equity. It will also mean infusion of fresh capital by a financial or strategic investor to implement the project and help protect the value of the asset within the timelines prescribed by RBI in its notification.

SDR has also been invoked on Lavasa’s two wholly owned subsidiaries – Warasgaon Assets Maintenance Limited and Warasgaon Power Supply Limited.

Lenders took note of the fact that due to a delay in implementation of earlier JLF approved structure, the project remained stalled for 2 years and an additional interest of around Rs 1,200 crore was accumulated and hence the release of working capital for the project needs to be resolved on priority.