As of August 2019, promoters had an outstanding of Rs 2,563 crore payable as interest and principal to the company. In November, the promoters wrote to the listed entity seeking a revised payment schedule because of significant and rapid deterioration in the credit market which created a liquidity crisis, besides less than expected realisation from the public offering. A new repayment schedule was put in place in December under which three quarterly payments were to made in March, June and September this year. The outstanding loan in December was at Rs 1,644 crore.
With the September deadline looming, the promoters also informed the company that efforts to raise funds have been considerably affected because of certain reasons beyond their control. The promoters said: “It is improbable for the promoters to facilitate funding of the September 2020 instalment.”
The promoters have now offered security on various assets aggregating to around Rs 1,200 crore. The firm said the security is slightly higher than the aggregate outstanding loan. Sterling and Wilson Solar said it would also levy of an additional interest of 400 basis points per annum over the average interest rate on borrowings, against the interest spread of 100 basis points per annum levied earlier.
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