March 31 (Renewables Now) - Suzlon Energy Ltd’s (BOM:532667) lending consortium, led by The State Bank of India (SBI), has approved the cash-strapped wind turbine maker’s plan to restructure its debt.
The manufacturer said in a bourse filing on Monday that the restructuring plan has received unanimous support by its lenders, paving the way for it to finalise various definitive agreements with them.
As previously reported by local media, Suzlon intends to restructure INR 127 billion (USD 1.68bn/EUR 1.53bn) worth of debt under a plan that includes a haircut for lenders. According to the Financial Express, it will be 60%.
Suzlon’s board of directors gave its nod to the debt restructuring plan at the end of February. The troubled firm said at the time it will issue 1 billion equity shares to its lenders, plus convertible debentures and warrants and, if required, will issue equity shares or equity-linked instruments to an extent of INR 10 billion. The company will also be able to dispose of certain investments and assets under the resolution.
(INR 10 = USD 0.133/EUR 0.121)