SBI-led consortium approves Suzlon Energy’s Rs 14,000-cr debt restructuring plan
The company is working on finalising various definitive agreements with the lenders, it told BSE
March 31, 2020 / 12:29 PM IST
The State Bank of India (SBI)–led consortium has unanimously approved the restructuring of Suzlon Energy’s Rs 14,000 crore worth of debt, the company said in a filing with the BSE.
“The company is working on finalising various definitive agreements with the lenders,” it added.
Details of the debt restructuring were not released, but the company and lenders have been working out a plan as per the Reserve Bank of India’s June 2019 circular on Prudential Framework for Resolution of Stressed Assets Directions, as per an Economic Times report.
The consortium had earlier approved in-principal to convert its sustainable debt into equity, which would require the banks to write-off part of the unsustainable debt and have promoters infuse Rs 400 crore equity in the company, it added.
A company spokesperson told the paper: “Despite lockdown and trying times, the resolution plan has been approved by consortium of lenders."
The plan was approved for Suzlon Energy board of directors and shareholders in February. They have agreed to convert Rs 8,200 crore worth loans to long-term optionally convertible debentures payable in 20 years.
Lenders will be issued 0.01 percent secured optionally convertible debentures of Rs 100,000 each, up to 100 crore equity shares up to 410,000, and up to 50 crore warrants of Rs 1 each. A resolution to issue shares or equity linked instruments worth Rs 1,000 crore has also been enabled, it added.
Promoters and entities will also be issued on preferential basis equity or compulsory convertible debentures worth Rs 400 crore.
The company also plans to raise funds and reduce debt by selling assets.