HCC spurts 7% as lenders to Lavasa invoke SDR

NEW DELHI: Shares of HCC jumped over 7 per cent in Friday's trade after lenders of one of it arms, Lavasa Corporation and two of its subsidiaries decided to go for strategic debt restructuring (SDR). The two subsidiaries are Warasgaon Assets Maintenance and Warasgaon Power Supply.

Following the news, the HCC stock rose 7.32 per cent to hit a high of Rs 35.15 on BSE.

In a filing to BSE, the company said the SDR process would involve lowering of debt burden by converting a part of lenders' loan into equity. Besides, there will be implementation of the proposed business plan and infusion of fresh capital by a financial or strategic investor to implement the project.

This will be done in a bid to protect the value of the assets within the timelines prescribed by the RBI in its notification, the company said.

The news has come as the project remained stalled for 2 years due to delays in implementation of previous JLF-approved structure that resulted in the accumulation of Rs 1200 crore in additional interest.