Suzlon Energy gets lenders nod for Rs 9,500 cr CDR plan
"The empowered group of corporate debt restructuring (CDR) cell comprising 19 lenders today formally approved our CDR proposal to recast Rs 9,500 crore of domestic debt. The package is effective from October 1, 2012 and does not include our foreign currency debt," Suzlon said in a statement.
The Tulsi Tanti-promoted company further said, the CDR proposal involves a 10-year door-to-door back-ended repayment plan with a reduced interest rate, which effectively means a 3 per cent savings on interest burden for the company.
The proposal also involves a two-year moratorium on principal and term-debt interest payments, apart from a fresh working capital loan of Rs 1,800 crore, which will have a six-months interest moratorium, which is aimed at helping the company accelerate execution of its strong order book.
During the course of the two-year moratorium, interest worth Rs 1,500 crore will be converted into equity, the company said.
The Pune-headquartered company further said that the package also includes promoters bringing in Rs 250 crore of fresh equity, of which Rs 62 crore was infused last December.
"This approval clearly underscores the fundamental viability of our business," Kirti Vagadia, Chief Financial Officer Suzlon Group.
SBI is the consortium leader and the CDR plan has been drafted by SBI Caps. SBI has a Rs 3,500-crore exposure to the company.
Suzlon was looking at recasting Rs
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