The Shapoorji Pallonji Group has told the subsidiary company, Sterling and Wilson Solar Limited (SWSL), that it would defer the payment of the loan amount of over ₹10 billion (~$135.8 million) that were outstanding as on September 30, 2020.

The repayment is part of the outstanding dues of ₹23.41 billion (~$318.1 million) as of September 30, 2020.

The board of directors in a meeting in December 2019 had considered a revised payment schedule for the repayment of ₹16.5 billion (~$224.2 million) in three installments of ₹5 billion (~$67.9 million) by March 31, 2020, ₹5 billion (~$67.9 million) by June 30, 2020, and the balance amount by September 30, 2020.

In April this year, Sterling and Wilson Solar had announced that it had received ₹5 billion (~$67.9 million) towards the March installment.

For the June installment, the company said that it had been paid only ₹1.03 billion (~$13.9 million) out the ₹5 billion (~$67.9 million) for the June installment as on date, and the promoters have asked for time until September 30, 2021, for the repayment of the outstanding amount.

The current outstanding amount for the June installment is ₹3.96 billion (~$53.8 million) for which the shareholders have provided immovable properties as securities worth about ₹4.60 billion (~$62.5 million). The promoters have offered additional securities of ₹7.40 billion (~$100.5 million) to cover the September 2020 installment, making the total security package of ₹12 billion (~$163.06 million).

“Considering the current economic slowdown and the challenges the promoter group is facing because of the ensuing COVID-19 pandemic, the board of directors has taken a decision to extend the repayment timeline until September 2021 and levy additional interest spread over 400 basis points over and above the average borrowing rate,”  the company added in its filing.

The company had earlier paid ₹10 billion in dues (~$140.18 million) of its outstanding loan. The payment consisted of the principal amount and the interest from the date of listing of the company’s shares in August until December 31, 2019. The company had finalized the repayment schedule based on the recommendations of the audit committee, the board of directors, in a meeting held on December 31, 2019.