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The new arbitration clause could be a game changer for HCC

The firm has opted for the new debt restructuring scheme for sustainable structuring of stressed assets to reduce its debts

Hamsini Karthik  |  Mumbai 

It was business as usual for Hindustan Construction Company (HCC) one of India's well known infrastructure companies now caught in deep debt trap until August 30.

HCC, which has opted for the new debt restructuring scheme — S4A (Scheme for Sustainable Structuring of Stressed Assets) to reduce its debts, saw its stock price zoom over 20% as the government approved certain initiatives to revive the construction sector. The new norms mandate the government agencies to pay 75% of the arbitral award to an escrow account, which companies may utilise towards to meet working capital ...

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First Published: Fri, September 02 2016. 17:05 IST