ET: Suzlon says debt resolution not dependent on single option, still working to reduce debt

9 September 2019: Suzlon Energy has said that its debt resolution plan is not dependent on a single option and that the company is working with its bankers to reduce its debt.

“We wish to clarify that Suzlon’s debt resolution and revival plan have never been dependent on any single option. We wish to reiterate that we continue to work on significant debt reduction alongside with our lenders,” the company informed bourses on Monday in response to reports that its one-time settlement offer to bankers is called off as potential investor has pulled out.

ET reported on Monday that bankers of the loss-making Suzlon Energy are working on a plan to recover dues that may include a significant haircut on loans as the company does not have any active interest from potential buyers.

The loss making wind turbine maker defaulted on loan repayments, paying overdue creditors and FCCB repayment. Its loans were categorised as non-performing assets by lenders and, therefore, the company made a one-time settlement offer to its bankers that entailed selling a majority stake in the company to raise funds to repay debt. Two international companies had shown interest at different stages, but both have subsequently pulled out.

The Tulsi Tanti-led company had net term debt of Rs 7,751 crore as on June-end, which included a foreign currency convertible debt. Its working capital loans were at Rs 4,000 crore.

The Economic Times reported

Categories: General News, India Bankruptcy

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