INSUBCONTINENT EXCLUSIVE:
Mumbai: Lenders to the debt-laden Suzlon Energy have agreed to a restructuring plan that allows the company to convert ?8,200-crore of loans
to long-term optionally converted debentures and preference shares
Lenders have also asked the promoters of the company, led by Tulsi Tanti, to infuse ?375 crore into the company as equity immediately to
activate the restructuring plan, which has been under discussion for the last one year, people familiar with the plan said.
The
restructuring plan was finalised at a meeting of lenders on Monday and is to be implemented after the boards of each of the banks ratify it
The company owes banks led by State Bank of India (SBI) a total of ?11,800 crore and has been facing issues with regards to repayments over
the last one year.
The plan agreed by banks identifies ?3,600 crore of loans as sustainable on which the company will pay 9% interest over
The remaining ?8,200 crore is to be converted into optionally convertible debentures (OCDs) and compulsorily convertible non cumulative
The promoters have to bring in ?375 crore capital at the earliest
SBI being the lead lender has driven the whole process and since all banks have signed an inter creditor agreement (ICA) in this case, we
SBI is the lead lender with dues of ?4,300 crore, followed by IDBI Bank with ?1,670 crore and Bank of Baroda with ?1,458 crore
SBI was driving the restructuring process while other lenders are part of the overseeing committee which has to approve the plan.
Suzlon had
to look at debt restructuring after talks with potential buyers fell through last year
It is rated D or default category by Care Ratings
83% to ?67.9 crore from ?397.4 crore
to consider approving a proposal to raise equity through a preferential issue, private placement or any other method permissible, Suzlon
said in a stock market notice on Monday.
