Suzlon Energy bankers stare at haircut on loans in new debt recast plan

MUMBAI: Bankers of the loss-making Suzlon EnergyNSE -12.50 % 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, two sources in the know said.

After Suzlon defaulted on loan repayments and its loans were categorised as non-performing assets by lenders, 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.

In June, ET had reported that Suzlon had told bankers that Canadian investor Brookfield was exploring acquisition of majority stake in the company; the deal didn’t work out as the company could not reach an agreement on valuation with the bankers.