21 June 2019: Suzlon Energy jumped the most in five months on Thursday a day before its lenders are poised to consider the beleaguered wind-turbine maker’s plan to sell its operations and maintenance business to pare debt.
Suzlon shares gained 22.4 per cent to close at Rs 4.1 in Mumbai paring its losses for the year to 24 per cent. The benchmark BSE Sensex index gained 9.9 per cent this year. The firm plans to offer a so-called one time settlement to the lenders led by SBI using the proceeds of the sale, said sources, asking not to be identified as the information is private. A spokesman for SBI and a spokeswoman for Suzlon didn’t immediately respond to an email seeking comment.
Approval for the proposal is critical for Suzlon as ratings on its long-term bank facilities were downgraded at Care Ratings to D from BB in April.
“Unfortunately, on account of a temporary mismatch in cash flow, the company was unable to fund its scheduled repayment obligations to its lenders,” Suzlon Chief Executive Officer J.P. Chalasani said in an exchange filing in April, reacting to the downgrade. He said the company was actively working with lenders for a debt revamp.