Suzlon Energy, the troubled wind turbine maker, has defaulted on the payment of Rs 7,256 crore to a consortium of 18 lenders, led by State Bank of India (SBI), the company informed exchanges. This amount includes interest of Rs 539 crore and principal amount of Rs 6,717 crore. The outstanding amount to the company was in the form of working capital, term loans and standby letter of credit The company has also disclosed that total amount due to financial creditors stands at Rs 12,785 crore.
This default has come at a time when bankers are still trying to figure out a resolution plan for the wind energy maker. The banks are trying to resolve Suzlon under the June 7 circular of the Reserve Bank of India. Lenders have time till month end before mandatory 210 day period expires to resolve the company. As per June 7 circular of RBI, the banks have to mandatorily make additional provisioning of 20% or refer companies to insolvency courts to avoid provisioning.
