On Tuesday, the stocks of the construction firm, Hindustan Construction Company (HCC), grew up by 20 percent soon after the company paid off part of its debt and arbitration claims to a special purpose vehicle where it will have a 49 percent stake.

HCC made the provision of ₹ 2,854.4 crores of bank debts with a beneficial economic interest in arbitration awards and claims worth ₹ 6,508 crores towards Prolific Resolution Private, the wholly owned subsidiary of the organization.

HCC has furnished a corporate guarantee in favour of SPV’s lenders for the debt novated by it to the SPV as well as pledged the shares held by it in SPV to secure the Non-Convertible Debentures (NCDs).

Arjun Dhawan, Vice-Chairman HCC, informed, “This milestone gives us the freedom to focus on building our business with renewed confidence, by addressing a fundamental legacy issue relating to delayed arbitration payments. I want to thank our lenders for their unwavering support in helping HCC realize its true growth potential as an Indian infrastructure major.”