The board of beleaguered wind energy producer Suzlon Energy has approved the debt restructuring plan, which will be presented to the committee of creditors (CoC) shortly. This debt restructuring plan will include equity infusion of up to Rs 400 crore by promoters and associates by way of issuance of equity shares or compulsory convertible debentures (CCD), the company said.
Earlier, FE reported that lenders to Suzlon would extend the inter-creditor agreement (ICA) till April 30 to give themselves more time to approve a resolution. As per sources, the current proposal offers 60% haircut to lenders in which the total debt will be split in sustainable and unsustainable portion in the ratio of 36:74. Suzlon owes Rs12,785 crore to financial creditors, and State Bank of India (SBI) is the lead lender. The other lenders include Axis Bank, Bank of Baroda, ICICI Bank, IDBI Bank and Yes Bank.