Suzlon Energy has received lenders’ approval for its debt resolution plan under the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019.
“State Bank of India, the lead bank of the consortium of lenders, has, vide its email dated 29th March 2020, conveyed that the resolution plan of the company was approved by it and subsequently circulated to the consortium of lenders, was put to vote by the consortium of the lenders and has since been approved by 100% of lenders by value, and 100% of lenders by numbers,” said Suzlon in a filing with the exchanges.
As per the resolution plan, the promoters have to raise capital to restructure its debt and sell assets as part of its revival plan.
The promoters also have to infuse a capital of ₹400 crore and convert ₹7,700 crore of its debt into convertible debentures.
The company has an outstanding debt of ₹12,785 crore, according to the disclosure of defaults on payment of interest, repayment of principal amount on loans from banks and financial institutions in the filing with the BSE in January.
“The resolution plan has been unanimously approved by the consortium of lenders. The company is working on finalising various definitive agreements with the lenders,” said the company in a statement.
The loans were given by a consortium of 18 banks led by the State Bank of India (SBI) along with the Indian Renewable Energy Development Agency (IREDA).
The company took secured loans for its subsidiaries, namely Suzlon Global Services Limited, Suzlon Gujarat Wind Park Limited, Suzlon Generators Limited, and Suzlon Power Infrastructure Limited.
Suzlon shares on the BSE closed up 2.14% at ₹1.91 in a weak Mumbai market on Monday, valuing the company at ₹1,016 crore.
