Wind turbine maker Suzlon Energy on July 1 said it has successfully completed its debt restructuring process. In a regulatory filing, the company said the debt restructuring process has been completed with unanimous approval of secured lenders.
"Consortium of lenders led by State Bank of India and the company have worked together to protect the interests of all the stakeholders involved, thereby protecting the Indian Wind Energy sector, saving thousands of direct and indirect jobs, ensuring the survival of large number of MSME vendors and protecting 13 GW of operating wind energy assets of the nation," Tulsi Tanti, Founder and CMD, Suzlon Group, said in the statement.
The company said the term debt is reduced substantially with interest of 9 percent per annum repayable over 10 years starting July 1, 2020.
The balance debt of secured consortium lenders has been replaced by 0.01 percent Optionally Convertible Debenture (OCD) of the company and 0.0001 percent Compulsorily Convertible Preference Shares (CCPS) of its subsidiary, redeemable or convertible in 20 years.
"We are pleased to have implemented our debt restructuring with unanimous approval from the consortium lenders and 99.9 percent of our FCCB holders. Capital infusion of Rs 392 crore by promoters, key shareholder and various stakeholders demonstrates their commitment and confidence in Suzlon," Group CEO J P Chalasani said.
Under the debt restructuring, the Persons Acting in Concert (PACs) with promoters of Suzlon Energy Ltd (SEL) have acquired 20,40,77,000 fully paid-up equity shares of SEL and and 4,998 fully paid up Compulsorily Convertible Debentures (CCDs) at par representing 20,39,98,368 equity shares.
The PACs along with the promoters of Suzlon Energy have acquired the said shares having a face value of Rs two each for cash at an issue price of Rs 2.45 per equity share and 4,998 fully paid up CCDs having a face value of Rs 1 lakh each for cash at par representing over 20.39 crore equity shares of Rs two each, it said in another regulatory filing.
Besides Tanti Holdings Private Ltd, an entity forming part of the promoter/promoter group of SEL has acquired, by way of preferential allotment, 40,80,77,000 fully paid-up equity shares of SEL having a face value of Rs two each for cash at an issue price of Rs 2.45 per equity share.
"This debt restructuring will ease the pressure on our cash flows significantly and give us headroom for ramping up business operations," Swapnil Jain, CFO, said.
Jain further said "we have reduced our fixed cost steeply and brought down the interest costs by more than percent. This has resulted in substantial reduction in the break-even point from pre-restructuring levels ensuring a long term sustainable business case. It improves our overall competitiveness in the market place and now Suzlon is back to business from a position of strength."
(With PTI inputs)
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