Tata Motors, which seems to be going through a rough phase right now, owes more than Rs 1,200 crore in unpaid dues to its suppliers. This debt is said to have been accumulated over the last few months. With declining sales in the domestic market, interminable delays in the Nano project and financial troubles with Jaguar and Land Rover, things certainly don’t seem to be going too well for Tata Motors.
According to the company, Tata Motors is working with its vendors to try and find a way out the unpaid dues situation. On their part, some vendors and suppliers are said to be negotiating for part payment of their dues, which would at least allow them to meet their working capital requirements and to pay off the loans that some of them have taken from various banks.
Tata Motors, which posted a loss of Rs 263 crore for Q3 FY 2008-09, is negotiating with its suppliers for more time in which to make the pending payments. The company is also said to be speaking to banks, from which wants to raise the funds for making payments to its vendors.
In the meanwhile, Tata Motors’ promoters, Tata Sons have increased their stake holding in the company to 28.94%, up from the 21.91% it owned up till months back. With this, the total promoter shareholding in Tata Motors is now 41.78%.