Suzlon unveils debt restructuring plan, suspends FY guidance

Oct 29, 2012 - Indian wind turbine maker Suzlon Energy (BOM:532667) Monday unveiled discussion with its senior secured lenders to restructure its debt over a 10-year repayment period, and said it had suspended its fiscal 2012/13 forecast.

The company's corporate debt restructuring (CDR) proposal includes a two-year moratorium on principal and interest payments on term-debt. Suzlon said that the CDR was aimed at improved liquidity and additional working capital. "We expect that an acceptable solution for all stakeholders will be reached at the earliest possible date," said chief financial officer Kirti Vagadia.

Regarding Suzlon's financial projections for the year through March 2013, the company suspended the guidance on liquidity constraints, volatile market, and as regards to the CDR process. This spring the company guided for fiscal 2012/13 revenues of INR 270 billion (USD 5bn/EUR 4bn) to INR 280 billion and an operating profit margin of 6%.

In mid-August Suzlon posted a net loss of INR 8.5 billion for its first fiscal quarter to June 30, compared to a profit of INR 835 million a year back. In mid-September it said it was seeking to extend to February 11, 2013 from October 11, 2012 the maturity date of USD 220.8 million (EUR 169m) in convertible bonds. After a meeting in October, the bondholders rejected the offer so the due date of both the USD 200 million of zero-coupon convertible bonds and the USD 20.8 million 7.5% convertible bonds remained October 11, 2012.

According to a report by news agency The Press Trust of India, Suzlon has total debt of INR 130 billion or some USD 2.4 billion.

(INR 100 = USD 1.849/EUR 1.434)

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