Please find intimation w.r.t Issuance of Corporate Guarantee on behalf of Subsidiary Company
AWHCL · price
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Antony Waste Handling Cell Ltd and its material subsidiary Antony Lara Enviro Solutions Private Limited have issued a corporate guarantee of ₹123 crore in favor of HDFC Bank Limited. The guarantee is for their subsidiary Antony Lara Renewable Energy Private Limited, facilitating HDFC Bank's takeover of existing credit facilities previously held by Power Finance Corporation Ltd. The guarantee was originally extended to PFC and is now being rolled over to HDFC Bank. The transaction is conducted at arm's length with no promoter interest. This represents a contingent liability of ₹123 crore for the parent companies if the subsidiary fails to meet repayment obligations.
This guarantee increases off-balance sheet contingent liabilities for the company. While there is no immediate cash impact, shareholders face potential risk of ₹123 crore liability if the renewable energy subsidiary defaults on its HDFC Bank loans.