Working capital stress due to delayed payments: Rolta

NEW DELHI: IT firm Rolta today said it is "diligently working" on addressing the working capital stress it is facing on account of delayed payments.

The company, which works majorly with Indian government agencies, has delayed a coupon payment of $6.8 million on a $127 million foreign currency bond issue due in 2018 that was scheduled to be made last month.

It had earlier failed to make payments on a $35 million loan.

"Rolta has had to continue incurring significant expenses on a very prestigious and time-bound defence project, which requires considerable ongoing investment; while at the same time the company has suffered unexpected delays in large payment collections; thereby facing working capital stress over the past few months," Rolta said in a statement.

As a result, Rolta has been unable to meet its recent obligations towards interest payment on Bonds/ECB installment, it added.

"Rolta management is diligently working on addressing the overall situation in a comprehensive manner in consultation with its bankers and strategic advisors," it said.

The aim is to arrive at an acceptable solution in the interest of all stakeholders, it added.

Rolta said it is committed to finding a viable resolution and will inform all stakeholders at the earliest possible opportunity.

Ratings agency Fitch has cut Rolta's rating to RD or restricted default from CC, while S&P Global lowered its rating to SD (selective default) from CCC-minus due to missed interest payments.