Solar EPC company Sterling & Wilson Solar Ltd (SWSL) on Wednesday informed stock exchanges that Rs500 crore payment due from its promoters, the Shapoorji Pallonji group and Khurshed Daruvala, on 30 June has been delayed as the promoters cited difficulty in availing financing due to the covid-19 pandemic.
"This refers to our letter dated June 26, 2020 regarding the apprehension made by Shapoorji Pallonji and Company Private Limited and Mr. Khurshed Daruvala vide their letter dated June 25, 2020, informing the Company that the facilitation of payment of installment of ₹ 500 Crore out of the Outstanding Loans envisaged to be repaid by June 30, 2020 (“June Installment") might spill beyond by a few weeks due to impact caused by the global pandemic COVID-19," the company said in a stock exchange filing.
The repayment is part of dues worth Rs2,644 crore that the promoters owe to SWSL. The loan was to be repaid within 90 days of Sterling and Wilson Solar’s IPO, which ended mid-November 2019.
The promoters had sought an extension for repaying the loans, blaming “significant and rapid deterioration in the credit markets.
The promoters have so far repaid Rs1,500 crore the company, with Rs500 crore due on 30 June and rest due by 30 September.
In a letter dated 4 July, the promoters informed the company that the instalment due on 30 June could not be facilitated, post which the company's board called for a meeting with the promoters to apprise the board about the specific actions underway at their end to complete facilitation of the June Installment.
"The Board noted that despite the sincere efforts of the Promoters, the global pandemic COVID-19 created a significant impact causing delays in their fund raising plans and consequently the June Instalment could not be repaid by June 30, 2020," the company said.
"Further, the board (excluding the Promoter Directors) insisted that the Promoters provide necessary security in respect of the June Installment, in an expeditious manner, which the Promoters have assured the Board to revert back at the earliest," it added.