Description
Modification of security terms for debentures of Prolific Resolution Private Limited, including reduction in corporate guarantee coverage from 100% to 20% of debt.
Summary
BSE has issued an update regarding modifications to the security terms of debt securities issued by Prolific Resolution Private Limited. The company has reduced the corporate guarantee coverage from 100% to 20% of the debt amount, as approved by debenture holders. The existing security charge over assets and personal guarantee remain unchanged.
Key Points
- Company Name: Prolific Resolution Private Limited
- Scrip Codes: 974217 and 974218
- ISIN: INE08YT07019 and INE08YT07027
- Corporate guarantee reduced from 100% to 20% of debt
- Security charge over secured assets remains unchanged
- Personal guarantee continues unchanged
- Modification approved by debenture holders
Regulatory Changes
No regulatory framework changes. This is a modification of existing debenture terms.
Compliance Requirements
- Debenture holders have approved the reduction in corporate guarantee coverage
- Security documentation will be amended to reflect the new 20% corporate guarantee coverage
- All other obligations under debenture documents remain as originally structured
Important Dates
- Circular Date: January 16, 2026
Impact Assessment
High Impact for Debenture Holders: The reduction of corporate guarantee from 100% to 20% of debt significantly reduces the security cushion for debenture holders. While the primary security (charge over assets) and personal guarantee remain intact, the corporate guarantee provided an additional layer of protection that has been substantially diminished. This modification increases credit risk for investors holding these debentures, though it has been approved by the debenture holders themselves.
Impact Justification
Significant reduction in corporate guarantee coverage from 100% to 20% materially impacts security position of debenture holders