Description

BSE announces changes to the terms of debentures issued by Prolific Resolution Private Limited, including reduction in corporate guarantee coverage from 100% to 20% of debt.

Summary

BSE has issued an update regarding debt securities of Prolific Resolution Private Limited (Scrip Codes: 974217 and 974218, ISIN: INE08YT07019 and INE08YT07027). The update outlines modifications to the terms of the debentures, specifically relating to the corporate guarantee coverage.

Key Points

  • Company Name: Prolific Resolution Private Limited
  • Scrip Codes: 974217 and 974218
  • ISIN: INE08YT07019 and INE08YT07027
  • Primary change: Corporate guarantee reduced from 100% to 20% of debt
  • Security charge and personal guarantee terms remain unchanged
  • Modifications have been approved by debenture holders

Regulatory Changes

The following terms have been modified:

Unchanged Terms:

  1. Security obligations remain secured by charge over secured assets (various awards and claims) created by the issuer in favor of the debenture trustee
  2. Personal guarantee remains unchanged

Modified Terms: 3. Corporate Guarantee: Reduced from 100% of the debt to 20% of the debt

Compliance Requirements

  • The changes to debenture terms have been approved by debenture holders as required
  • No additional compliance requirements specified in the circular

Important Dates

  • Circular Date: January 16, 2026
  • No specific implementation or effective dates mentioned

Impact Assessment

The reduction in corporate guarantee coverage from 100% to 20% of the debt represents a material weakening of security for debenture holders. However, the change has been approved by the debenture holders themselves, suggesting mutual agreement. The primary security through charge over secured assets and personal guarantee remains intact. This modification may impact the risk profile and valuation of these debt securities in the secondary market.

Impact Justification

Material change in security terms affecting debenture holders, particularly the significant reduction in corporate guarantee coverage from 100% to 20%, though approved by debenture holders