Supreme Infrastructure India Ltd said it has significantly reduced its corporate guarantee exposure following a court-approved amicable resolution plan concerning its erstwhile subsidiary, Kopargaon Ahmednagar Tollways (Phase I) Pvt Ltd.
Under the approved resolution plan, the company’s corporate guarantee exposure has been reduced from around Rs 180 crore to Rs 36.51 crore, lowering its potential exposure by approximately Rs 143.49 crore, or nearly 80%.
The company said the resolution plan provides for settlement of various claims and business requirements aggregating Rs 36.51 crore. It expects the move to substantially mitigate the risk of invocation of the corporate guarantees and reduce its contingent liabilities.
As per the resolution plan, once the final tranche is paid and all applicable conditions are fulfilled, claims of the concerned financial creditors will be settled and extinguished. The related corporate guarantees, charges, liens and encumbrances will subsequently be released in accordance with the approved terms.
The company said the reduction in guarantee exposure, along with the proposed release of the underlying guarantees, marks a significant milestone in its efforts to reduce legacy contingent liabilities and strengthen its financial position.