Lenders agree to recast R11,000 cr debt: Suzlon

Nov 28 2012, 00:47 IST
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SummaryBanks have agreed to restructure about Rs 11,000 crore of debt in the books of Suzlon Energy Ltd under the corporate debt restructuring (CDR) mechanism.

Banks have agreed to restructure about Rs 11,000 crore of debt in the books of Suzlon Energy Ltd under the corporate debt restructuring (CDR) mechanism.

As part of the deal, the rupee debt, which was due in five and six years, will be restructured with a two-year moratorium on interest and principal repayment, after which the loans will be repaid over eight years at a lower rate, an official said.

The debt is being recast by about 20 banks, led by State Bank of India, the country’s largest lender, which had exposure to the company of about Rs 3,500 crore as of last month. The CDR is expected to provide a relief to the company which was neck deep in losses and debt.

Its net debt is still about Rs 13,000 crore at the group level at the end of June, and the CDR does not apply to its overseas bonds. Suzlon Energy last month defaulted on a $200 million convertible bond redemption.

Suzlon shares closed 10 per cent higher at Rs 17.05 on the BSE on Tuesday, posting their biggest one-day gain in nearly four months.

For the July-September quarter, the company reported higher losses at Rs 807.74 crore, against Rs 48 crore net profit a year ago. Its consolidated loss was at Rs 546 crore for the September quarter.

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