India, Jan. 13 -- Hindustan Construction Company's (HCC) lenders have initiated a carve-out of about Rs 2,100 crore of debt to a third-party-controlled SPV along with certain Arbitration Awards and Claims in a move that will significantly deleverage the Company and address its asset-liability mismatch.

The debt - along with receivables comprising approximately an Award cover of 1.0x and Claims under Arbitration of 1.5x - will move to an SPV controlled by a new investor. The tenure of the debt at the SPV will be up to 10 years and repayments from the proceeds of the Awards will yield an IRR higher than current yields offered by HCC.

The debt/asset carve-out, which will be in the nature of a slump sale, is subject to lenders' final approva...