The promoters of Suzlon Energy, led by Chairman and Managing Director Tulsi Tanti, have sold 2.11 per cent of their holding to mobilize Rs. 63 crore in order to meet the requirement of a corporate debt restructuring (CDR) being undertaken.
Suzlon is reeling under a debt burden of over Rs. 13,000 crore, including foreign currency convertible bonds (FCCBs) obligations, and its lenders have agreed to restructure the debt.
However, as part of the CDR process, Suzlon’s promoters are required to infuse some money upfront into the company to ensure successful implementation of the scheme.
“The company has started the process to comprehensively address its liabilities inter alia through CDR. The promoters have informed the company that they have sold 3.75 crore shares for a total consideration of approximately Rs. 63 crore, representing approximately 2.11 per cent of the paid-up capital of the company,” Suzlon Energy said.
“The promoters have informed the company that they would infuse the funds into the company by a suitable mode at the earliest. This is, subject to applicable law, to comply with equity infusion requirement under the corporate debt restructuring (CDR) mechanism,” Suzlon said.
The company said it plans to use these funds for business operations and debt reduction. Following the sale of stake to mobilize funds, the promoter group’s holding has been reduced to 50.65 per cent of the paid up equity capital. Apart from restructuring the debt, Suzlon wants a two-year moratorium on repayment of term loans. Recently, overseas bondholders of the company had rejected a proposal seeking a four-month extension to repay the $221 million debt.
