Clean Max Enviro Energy Solutions Limited has informed the Exchange about giving Corporate guarantees issued for Clean Max Como Private Limited and Clean Max Pacific Private Limited, subsidiaries of the Company
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Clean Max Enviro Energy Solutions Limited has issued corporate guarantees totalling INR 172 crore on behalf of its two subsidiaries — Clean Max Como Private Limited (INR 84 crore) and Clean Max Pacific Private Limited (INR 88 crore). The guarantees have been provided to lenders as security for term loan facilities availed by these subsidiaries. The transaction was carried out at arm's length, and the promoter group has no interest in it. As of the date of disclosure, there is no immediate financial impact on the listed entity, though the guarantees represent a contingent liability.
While there is no immediate impact, the guarantees are contingent liabilities — if the subsidiaries default on their loans, the parent company Clean Max would be on the hook for up to INR 172 crore. For shareholders, this means increased exposure to subsidiary-level debt without any equity dilution.