Suzlon resolution plan gets committee of creditors go-ahead

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Published: March 31, 2020 3:15:54 AM

“The resolution plan was put to vote by the consortium of lenders and which has since been approved by 100% of lenders by value, and 100% of lenders by numbers,” the company said.

According to sources, the current proposal by promoters implies around 60% haircut to lenders on a total exposure of Rs 12,785 crore to financial creditors.According to sources, the current proposal by promoters implies around 60% haircut to lenders on a total exposure of Rs 12,785 crore to financial creditors.

The committee of creditors (CoC) of beleaguered wind energy producer Suzlon Energy has approved the resolution plan by 100% vote, the company said in a release to the stock exchanges on Monday. The CoC was led by State Bank of India (SBI).

According to sources, the current proposal by promoters implies around 60% haircut to lenders on a total exposure of Rs 12,785 crore to financial creditors.

“The resolution plan was put to vote by the consortium of lenders and which has since been approved by 100% of lenders by value, and 100% of lenders by numbers,” the company said.

FE reported earlier that lenders voted on Suzlon resolution last week despite the Covid-19 constraints.

Under the approved resolution plan, the majority portion of company’s Rs 12,785-crore debt will be converted into sustainable and unsustainable debt and will be repaid over 20 years, according to sources.

In the first 10 years, Suzlon Energy will repay sustainable debt of Rs 3,600 crore, which is around 30% of the total debt. The unsustainable portion of the debt 7,700 crore, which is 60% of the total amount, will be convertible debentures held in the investment books of banks.

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