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Lenders agree to recast Suzlon debt

27 November 2012

press trust of india
MUMBAI, 27 NOV: The SBI-led consortium of 20 lenders has agreed to recast Rs 11,000 crore loan of the struggling Suzlon Energy under the corporate debt restructuring (CDR) mechanism, a top company official has said. The world's fifth largest wind turbine maker, which had last month defaulted on the redemption of its $221-million foreign currency convertible bonds (FCCBs), had a fully secured gross debt of Rs 14,568 crore on its book as of the July-September quarter, taking its debt to four times the equity.
At the end of the quarter, its net debt stood at Rs 13,604 crore and a cash balance of Rs 964 crore, according to the balance sheet statement.
“The lenders led by SBI have agreed to consider our Rs 11,000-crore CDR proposal and we hope to conclude the deal in the next few months,” a top Suzlon official told on the condition of anonymity.
SBI could not be reached for comments, nor SBI Caps which is drafting the CDR plan.
Most of the 20 lenders to the debt-laden Pune-based company are state-run banks and SBI has an exposure of around Rs 3,500 crore.
The other lenders include IDBI Bank, Bank of Baroda, Axis Bank, Punjab National Bank, Indian Overseas Bank, Central Bank of India, Yes Bank, and State Bank of Bikaner & Jaipur among others.
Last month, SBI had suggested merger of Suzlon's profitable German subsidiary REpower with the group to improve profitability and de-leverage its balance sheet.