The board of beleaguered wind energy producer Suzlon Energy has approved the debt restructuring plan, which will be presented to the committee of creditors (CoC) shortly.
The board of beleaguered wind energy producer Suzlon Energy has approved the debt restructuring plan, which will be presented to the committee of creditors (CoC) shortly. This debt restructuring plan will include equity infusion of up to Rs 400 crore by promoters and associates by way of issuance of equity shares or compulsory convertible debentures (CCD), the company said.
Earlier, FE reported that lenders to Suzlon would extend the inter-creditor agreement (ICA) till April 30 to give themselves more time to approve a resolution. As per sources, the current proposal offers 60% haircut to lenders in which the total debt will be split in sustainable and unsustainable portion in the ratio of 36:74. Suzlon owes Rs12,785 crore to financial creditors, and State Bank of India (SBI) is the lead lender. The other lenders include Axis Bank, Bank of Baroda, ICICI Bank, IDBI Bank and Yes Bank.
The company informed exchanges that under the approved debt restructuring plan, it would issue securities, shares, convertible bonds and warrants to lenders for converting of part of debt into equity. On issuing securities to lenders, the company said it would give 100 crore shares of Rs 2 each and also issue 0.041 crore secured optionally convertible debentures of Rs1 lakh each and 50 crore warrants of `1 each. The board has also cleared an enabling resolution to issue equity shares or equity-linked instruments to an extent of Rs1,000 crore.
The Pune-based company will also divest and dispose some of investment, assets and also dilute stake in some of the undertakings in line with the approved plan. However, the company did not specify assets it would sell to reduce its stake in some companies.
The board also approved a proposal to appoint Sameer Shah as an independent director of the company for a five-year term commencing February 27. His appointment is subject to regularisation by the shareholders at the next Annual General Meeting of the company. The directors also gave a nod for amending the Articles of Association and increase in the authorised share capital and alteration of the capital clause of the Memorandum, it added.