Azure Power Global should be able to publish results within 14 weeks: CFO
Azure Power Global's CFOs Sugata Sarkar and Pawan Kumar Agrawal assured bond holders in Singapore that the company should be able to publish its long-delayed results within 14 weeks and avoid a technical default. The company, majority-owned by Canadian pension funds CDPQ and OMERS Infrastructure, has until the end of this month to appeal the NYSE's delisting order, with the final decision expected after a potential three-month process.
The company's $350 million 5.65% bond due-December 2024 and $414 million 3.575% bond due August 2026 showed increased interest, but only with bids and no offers, as per a bond trader source. The bonds were up 1-2 points at 86 and 77, respectively.
On July 13, the NYSE suspended trading in Azure Power's shares and plans to apply to the SEC for delisting due to the company's failure to file its annual report for FY22 and 1H23 reports. However, the senior management clarified that they have until late this month to appeal the delisting decision, which may take up to three months.
Delisting of shares will lead to a breach of covenant and trigger a technical default on the two offshore bonds — $350 million due 2024 and $414 million due 2026 — raised by Azure, a renewable power producer in India, Moody's had said, while downgrading Azure Power Energy's senior unsecured rating to B2 from B1 and Azure Power Solar Energy's (APSEP)-backed senior unsecured rating to B1 from Ba3. However, the management assured investors that the projects supporting offshore notes are not affected by whistleblower allegations.
The management mentioned that they asked Ernst & Young to resign as auditor due to delays in completing the audit process. The group appointed ASA & Associates LLP and a member firm of BDO
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