sterling and wilson
Sterling and Wilson Solar has asked promoters to provide security as they could not fulfil the June outstanding loan installments due to Covid-19 pandemic which caused a delay in fundraising plans. Post announcement, the company’s stock was trading at an intraday low of Rs244.80 per piece, down by 5% at around 12.17 pm.

Sterling and Wilson on Wednesday told exchanges, “This refers to our letter dated June 26, 2020, regarding the apprehension made by Shapoorji Pallonji and Company Private Limited and Khurshed Daruvala (collectively referred to as “Promoters”) vide their letter dated June 25, 2020, informing the Company that the facilitation of payment of instalment of Rs500cr 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.”

Later on July 04, the company received a letter from the promoters informing that as apprehended by them, the June installment could not be facilitated by June 30, 2020.

Subsequently, 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.

Following all the above, Sterling and Wilson board of directors in a meeting held on July 07, noted that despite the sincere efforts of the Promoters, the global pandemic COVID-19 created a significant impact causing delays in their fundraising plans and consequently the June Instalment could not be repaid by June 30, 2020.

Thereby, the board members (excluding promoters) insisted that the Promoters provide necessary security in respect of the June Installment, in an expeditious manner. Adding the company said, “the Promoters have assured the Board to revert at the earliest.”

On Sensex, the stock opened at an intraday high of Rs255 per piece, lower compared to the previous closing of Rs257.65 per piece.

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