Wind power producer Suzlon Energy on Wednesday said its secured lenders have signed an inter-creditor agreement (ICA) under the Reserve Bank of India’s (RBI) June 7, 2019, circular for resolution of stressed assets. The circular makes it mandatory for lenders, including financial institutions and small finance banks, to enter into an ICA within 30 days from a default, also referred to as the ‘review period’, during which lenders review an account and decide on a resolution strategy.
On Tuesday, Suzlon had defaulted on principal payments due on foreign currency convertible bonds (FCCBs) worth $172 million. The company owes banks Rs 9,624 crore as on March 31, 2019.
