Shares of Hindustan Construction Company ( HCC) fell ahead of a lenders meet to discuss debt restructuring for the company.
The construction company looks to recast Rs4000 crore in debt, according to sources. It has a debt to equity ratio of 3, which means that the company has three times more debt than equity.
ICICI Bank is the lead bank in the consortium of lenders along with Axis Bank, SBI, IDBI and Canara Bank, according to sources.
The lenders are expected to discuss all options including debt refinancing. They are also likely to discuss reduction of interest costs and conversion of short term loans to long term loans.
However, HCC said that the meet is part of its regular engagement with bankers to find long term solutions.
“Since HCC has a large set of Bankers spread across India, sometimes it becomes necessary to hold all lenders meet to address the issues for finding solutions,' it said in a statement.
....more info
The construction company looks to recast Rs4000 crore in debt, according to sources. It has a debt to equity ratio of 3, which means that the company has three times more debt than equity.
ICICI Bank is the lead bank in the consortium of lenders along with Axis Bank, SBI, IDBI and Canara Bank, according to sources.
The lenders are expected to discuss all options including debt refinancing. They are also likely to discuss reduction of interest costs and conversion of short term loans to long term loans.
However, HCC said that the meet is part of its regular engagement with bankers to find long term solutions.
“Since HCC has a large set of Bankers spread across India, sometimes it becomes necessary to hold all lenders meet to address the issues for finding solutions,' it said in a statement.
....more info