Hindustan Construction Co. defaulted on debt worth Rs 2,161 crore due as on Dec. 31.
The amount includes Rs 998.3 crore in principal amount and interest and other charges worth Rs 629.9 crore and Rs 534.2 crore, respectively, according to the company's exchange filing.
The company has outstanding debt of Rs 9,727 crore, of which it owes banks Rs 4,091 crore.
Shares of HCC have fallen more than 5% over the last two trading sessions.
Resolution Plan
The board of the company had approved a debt-restructuring plan on May 28 last year. Under the plan, HCC were to transfer up to Rs 4,000 crore liability to its subsidiary Prolific Resolution Pvt. It also planned to transfer awards of up to Rs 2,749 crore and claims of up to Rs 2,136 crore to the arm to pare debt.
According to the plan, an investor identified by lenders would acquire 51% stake in the subsidiary for Rs 25 crore and will infuse Rs 75 crore in Prolific Resolution in the form of priority debt. The return on this investment was capped to an agreed threshold.
HCC's corporate guarantee to lenders of Prolific Resolution was limited to 20% or a maximum Rs 800 crore of the debt transferred.
The implementation of the plan, however, has been delayed.
The debt resolution plan is in final stages, the company had said in a Nov. 11 statement. It continues to receive lender approval and implementation is expected in the quarter ended December.
HCC, however, has not provided any update on the plan since then.
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