The Hindu :MUMBAI, January 25, 2013
The package includes a two-year moratorium on principal and term-debt interest payments; a three per cent reduction in interest rates; and six months moratorium on working capital interest.
As part of the package, Rs.1,500 crore, which is two years interest payment during moratorium, will be converted into equity or equity-linked instrument over the next two years to bring stronger financial stability.
REPAYMENT PLAN
Suzlon has also got a 10-year repayment plan. The lenders have also agreed to provide enhanced working capital facility to the tune of Rs.1,800 crore, which will allow the troubled wind turbine maker to accelerate the execution of the order book.
The promoters have been asked to bring in equity to the tune of Rs.250 crore into the company within a stipulated time-frame.
Out of this, Rs.62 crore has already been infused, the company said.
The approved CDR is effective from October 1, 2012.
“This approval clearly underscores the fundamental viability of our business. This is a major step forward in our efforts to achieve sustainable capital structure,” said Kirti Vagadia, Chief Financial Officer, Suzlon Group.
“The terms of the package….are key enablers towards normalising our business. I am confident that by this CDR package, we will quickly return to position of stability and confidence for our customers, vendors and employees,” Mr Vagadia added.
“Additionally, we will continue to be in constructive dialogue with majority of our bond holders across all the four series, and this development will help provide further visibility towards finding a consensual solution at the earliest,” he added.
$200 MILLION DEFAULT
In October last, the company had defaulted a $200 million (about Rs.1,100 crore) convertible bond redemption due to severe liquidity problem eroding its credibility among investors. Suzlon is the world’s fifth largest wind turbine maker. Suzlon Group said that its long-term strategic plan for realising synergies from its REpower remains unchanged.
Posts
