On October Suzlon (link) had announced it's Long Term Debt Restructuring Plan "Corporate debt restructuring (CDR)" and this plan has entered a new phase. And According to India's leading daily Hindu, the group has sold 2.11% stake in the company or 3.75 crore shares, which will help them raise Rs 63 crore.
Suzlon, which is India's leading Wind Turbine Manufacturer has been struggling recently, and the Company has a total debt of about Rs 13,000 crore. This figure also includes Foreign Currency Convertible Bonds obligations. Suzlon had piled up these debts all thanks to the acquisition of REpower
Systems, a German based Wind Turbine Manufacturer and Hansen Transmissions, a Belgium based Gear Wind Turbine Gear Box Maker. But Suzlon sold its stake in Hansent, but still it didn't ease the burden as the interest rates climbed.
Suzlon is Planning to use these funds for debt
reduction and business operations. India's Leading Bank, State bank of India- SBI has a massive lend exposure of Rs 3,500 crore in Suzlon.
What is Suzlon's CDR?
The company with consultation with its senior secured lenders took a decision to undertake a debt restructuring exercise under the Corporate debt restructuring (CDR) mechanism. This includes a two-year moratorium on principal and interest payments on term-debt.
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