Suzlon lenders to discuss CDR package today
Though Suzlon's R11,000-crore debt has been admitted into the CDR cell, the company's recast package has not yet been approved by the lenders.
Over the last few weeks the monitoring committee or the largest lenders to Suzlon, including State Bank of India and IDBI Bank, have been meeting to thrash out the finer details of the package. This will now be presented to the rest of the consortium on Friday.
For approval by the consortium, the CDR package would require a mandate from atleast 75% of the lenders by value and 60% of the lenders by amount.
The main lenders to Suzlon are SBI with an exposure of around R3,500 crore, IDBI Bank with around R1,700 crore exposure, Bank of Baroda at R1,000 crore and Indian Overseas Bank at R1,000 crore. Some of the other lenders to the group with smaller exposures include ICICI Bank, Axis Bank, Dena Bank, and Yes Bank.
According to Suzlon's flash report that contains the initial proposals for the CDR package, the company's promoter Tulsi Tanti is expected to bring in R250 crore. Apart from a two year loan moratorium, the package will also include term loans and working capital loans. The flash report also proposes rolling over $475 million in FCCBs.
Suzlon also plans to sell off some of its assets, including Suzlon Tianjin, SE Forge and SE Electricals,
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