Description

BSE notifies changes to security terms for debentures of Prolific Resolution Private Limited, including modification of corporate guarantee 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, ISINs: INE08YT07019 and INE08YT07027). The key modification involves a substantial reduction in corporate guarantee coverage from 100% to 20% of the debt, approved by debenture holders.

Key Points

  • Company: Prolific Resolution Private Limited
  • Scrip Codes: 974217 and 974218
  • ISIN: INE08YT07019 and INE08YT07027
  • Corporate guarantee reduced from 100% to 20% of debt
  • Change approved by debenture holders
  • Security by charge over assets remains unchanged
  • Personal guarantee remains unchanged

Regulatory Changes

Corporate Guarantee Modification:

  • Existing Terms: Corporate Guarantee to the extent of 100% of the Debt
  • New Terms: Corporate Guarantee to the extent of 20% of the Debt
  • Justification: As approved by Debenture Holders

Unchanged Terms:

  1. All obligations of the Issuer under the Debentures remain secured by a charge over the Secured Assets (various awards and claims) created in favor of Debenture Trustee
  2. Personal Guarantee continues without modification

Compliance Requirements

  • Debenture holders should note the reduced corporate guarantee coverage
  • Investors should reassess risk profile based on modified security terms
  • The Debenture Trustee continues to hold charge over secured assets for benefit of debenture holders

Important Dates

  • Circular Date: January 16, 2026
  • Approval by debenture holders already obtained

Impact Assessment

High Impact on Debenture Holders: The reduction of corporate guarantee from 100% to 20% of debt represents an 80% decrease in guarantee coverage, significantly increasing the risk exposure for debenture holders. While the charge over secured assets and personal guarantee remain intact, the corporate guarantee provided additional layers of security. This material change in security structure may affect the credit risk assessment and market perception of these debt securities. Investors holding these debentures should carefully evaluate the adequacy of remaining security mechanisms given the substantially reduced corporate guarantee coverage.

Impact Justification

Significant reduction in corporate guarantee coverage from 100% to 20% materially affects debenture holder security and risk profile