Max Estates Limited has informed the Exchange about giving Corporate Guarantee for Subsidiary Company
MAXESTATES · price
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Max Estates Limited has issued an additional corporate guarantee of INR 100 crores to Catalyst Trusteeship Limited (acting as Security Trustee for ICICI Bank and Yes Bank) on behalf of its subsidiary Max Square Limited. This takes the total corporate guarantee obligation to INR 350 crores for loans supporting a commercial project in Sector 129, Noida. The subsidiary has existing sanctioned credit limits of INR 292 crores each from ICICI Bank and Yes Bank to fund construction costs. The company states this is a contingent liability and will not impact its consolidated debt position.
Shareholders should note that Max Estates is taking on additional contingent liability of INR 100 crores, bringing total guarantees to INR 350 crores for subsidiary's project funding. While the company states consolidated debt won't be affected, this increases exposure if the subsidiary defaults on its loans.