Sterling and Wilson Solar on Wednesday said its board has asked company promoters to provide necessary security in respect of default on the loan installment of Rs 500 crore that was due on June 30. The payment was to be made by Sterling and Wilson Private Ltd and its subsidiary Sterling and Wilson International FZE to Sterling and Wilson Solar Ltd and Sterling and Wilson International Solar FZCO.
“A meeting of the Board of Directors of the Company was convened on Tuesday, July 07,2020 at a short notice wherein, 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,” a regulatory filing said.
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.
On June 26, 2020, promoters Shapoorji Pallonji and Company Private Ltd and Khurshed Daruvala had expressed apprehensions that the facilitation of payment of installment of Rs 500 crore out of the outstanding loans envisaged to be repaid by June 30, 2020 might spill beyond by a few weeks due to impact caused by the global pandemic COVID-19.
The company had received a letter from the promoters on July 4, 2020 informing the company that as apprehended by them, the June Installment could not be facilitated by June 30, 2020.
The Board of Directors of the company called for a meeting with the promoters, so that they could apprise the members of the Board about the specific actions underway at their end to complete facilitation of the June Installment at the earliest possible.
The company said that a detailed interaction was conducted between the board of directors and the promoters.
Thereafter, the board asked the promoters firms to provide necessary security to defaulted Rs 500 crore installment.