Lenders to Sujana Towers are not inclined to accept the promoters’ proposal to sell a part of the company to investors, since the loan repayment from the sale would be a mere Rs 68 crore, senior bankers told FE.
According to a banker, the company has received interest from a Chinese and a Singaporean investor, and has also sought fresh loans of Rs 200 crore.
“The company has already turned non-performing in the books of all banks and we are not keen on financing another Rs 200 crore,” the banker said, adding that the proposal to repay only Rs 68 crore of bank loans is also not acceptable.
In FY16, the company posted a net loss of Rs 146 crore on the back of Rs 1,399 crore in revenues, primarily owing to Rs 258 crore in interest outgo, up 14% from the previous year.
In the first quarter of the current fiscal, it reported a net loss of Rs 102 crore on revenues of Rs 15 crore.
The company’s total debt stood at Rs 1,962 crore in FY16, up 27% from the previous year. An email sent to the company remained unanswered till the time of going to press.
Bankers to the company include Andhra Bank, Central Bank of India, Exim Bank, IDBI Bank, Karnataka Bank, Punjab National Bank and UCO Bank.
The Hyderabad-based company is promoted by Sujana Holdings Limited (21.45%), Yalamanchili Finance and Trading (P) Ltd (8.43%), Foster Infin and Trading (P) Ltd (9.01%), Sujana Pumps and Motors (P) Ltd (0.88%) and YS Chowdary (0.66%) among others.
In February this year, the board of Sujana Towers had passed a resolution to allow lenders convert debt into equity under the strategic debt restructuring scheme (SDR) formulated by the Reserve Bank of India. While the company’s debt was restructured under the corporate debt restructuring (CDR) mechanism, the package failed and the company exited the CDR cell in September.
In its FY16 annual report, Sujana Towers said it has been facing discrimination in procuring orders on account of being tagged as a CDR company. It made customers unwilling from placing bulk orders. “The realisation from the debtors is getting stagnated due to the delays in executing the orders at various levels, causing concern,” the company said.