XL Energy (XL Telecom and Energy Ltd) Rejigs operations to focus on solar energy segment, to exit telecom:

http://www.thehindubusinessline.com/2010/06/29/stories/2010062953030200.htm 

This is for those who spreads nonsense about this wonderful turnaround company......!!

XL Telecom Energy Ltd has restructured its business operations to focus on the solar energy segment and has decided to change its name to XL Energy Ltd.

The board of directors approved this move and has convened an extraordinary general meeting on July 23, to seek approval for the name change and to hike the authorised capital from Rs 30 crore to Rs 150 crore.

Meanwhile, the company, which has negotiated with several banks including SBI and Canara Bank for corporate debt restructure, has raised Rs 49 crore by issuing cumulative redeemable preference shares of Rs 10 each, to banks.

The Managing Director of XL Telecom & Energy Ltd, Mr K. Vasudeva Rao, told Business Line that the company has had a few tough quarters which put considerable pressure on company finances and debt. This has necessitated renegotiation with banks for corporate debt restructure (CDR).

“The CDR would help the company focus on its business. With new orders coming through from overseas, XL expects to improve performance by next quarter. The company has a manufacturing facility for solar power generation panels. With fresh interest in the solar cell business coming up, we believe the next quarter will help company improve its performance,” he said.

The management has decided to exit the telecom business where it was supporting mobile handset work through a tie-up with Kyocera.

However, in view of the changed business environment, the company has decided to concentrate on the solar power segment. “Therefore, we have decided to change the company name,” he said.

Mr Rao said XL has opened subsidiaries in Canada and Australia to tap into the solar power generation business as a supplier.