Sterling and Wilson Solar extends time for repayment of loan due from borrowers; Stock trades flat
The company said it has been paid an amount of Rs103cr as on date out of June 2020 Installment of Rs500cr from Sterling and Wilson Private Limited and its subsidiary Sterling and Wilson International FZE.
Sterling and Wilson Solar Limited updated the exchanges Tuesday on status of repayment of Rs500cr out of the outstanding loan amounts due from Sterling and Wilson Private Limited and its subsidiary Sterling and Wilson International FZE to the company and Sterling and Wilson International Solar FZCO, subsidiary of the company (June 2020 Installment) and Security Creation.
The company said it has been paid an amount of Rs103cr as on date out of June 2020 Installment of Rs500cr.
The Promoters have created security on certain immovable properties valued at Rs460cr in favour of the company by creating mortgage by way of deposit of the title deeds to the company to secure the balance amount of Rs397cr of June 2020 installment.
The Promoters vide their letter dated September 15, 2020 have informed the Board that the balance amount of Rs397cr of June 2020 installment could not be paid due to the reasons as are explained to the Board from time to time.
This update from the company was in reference to the letters by Shapoorji Pallonji and Company Private Limited (“SPCPL”) and Khurshed Daruvala (both referred to as the ‘Promoters’) dated June 25, 2020 and July 4, 2020 whereby the Promoters had sought for extension of time to facilitate the repayment of the June 2020 Installment of Rs500cr and the Board of Directors of the company at its meeting held on July 7, 2020 had requested the Promoters to provide necessary security in respect of the June 2020 installment, and to revert back to the Board at the earliest.
The company on Tuesday has approved further extension of time upto September 30, 2021 to facilitate funding for the repayment of part of
June 2020 Installment and September 2020 Installment. Security offered by the Promoters, subject to creation of the same to the satisfaction of the Board. It levied an additional interest spread of 400 basis points p.a. over the average interest rate on borrowings as against the interest spread of 100 basis points p.a. levied earlier. Interest shall be paid on a quarterly basis.
The company stock is currently trading at Rs236.70, up Rs1.65 or 0.70% than previous closing of Rs235.05 on the BSE.