Companies

Sterling and Wilson promoters seek more time to repay dues

Our Bureau Mumbai September 16 | Updated on September 16, 2020 Published on September 16, 2020

Shapoorji Pallonji and Khurshed Daruvala, the promoters of Sterling and Wilson Solar Limited (SWSL) have sought for a time extension to repay the June 2020 instalment of ₹500 crore to Sterling and Wilson.

On March 31, the promoters have paid back ₹1,500 crore of the total dues estimated to be ₹2,644 crore. This ₹1,500 crore has been paid in 3 instalments of ₹500 crore in March, June and September.

The repayment is inclusive of principal and interest. The SWSL Board had in its meeting asked the promoters to provide necessary security in respect of the June 2020 Instalment. In response, the promoters have paid ₹103 crore, out of the ₹500 crore instalment which was to be paid in June.

Further, the Promoters have created security in the form of mortgaging certain immovable properties valued at ₹460 crore to pay off the remaining ₹397 crore, it said in a filing to the exchanges.

Initially, these repayments were to be repaid within 90 days of Sterling and Wilson Solar’s IPO in November 2019. However, the promoters sought an extension for repaying the loans, citing “significant and rapid deterioration in the credit markets”.

Further, for the balance amount due on September 30, the promoters informed the board that, SPCPL and SWPL’s efforts for availing/raising a fund-based facility (“proposed facility") have been considerably affected due to certain reasons beyond their control, due to which, it is improbable for the promoters to facilitate funding of September 2020 installment, the exchange filing said.

This development also comes at a time when the Shapoorji Pallonji Group, which is locked in a bitter battle with Tata Sons, has accused the latter of trying to block its ₹11,000-crore fund-raising plans through an urgent petition filed before the Supreme Court. SP Group was looking to raise capital against the security of its shares in Tata Sons, an SP Group spokesperson said. On September 5, Tata Sons moved an application before the apex court seeking to restrain SP Group promoters from raising capital.

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Published on September 16, 2020
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