Suzlon moves a step closer to resolution as board approves allotment of securities

The board of Suzlon Energy has approved allotment of equity shares, optionally convertible debentures (OCDs) and warrants of the company to lenders, in a meeting held on Saturday evening. The approval by the board takes the company a step closer to the implementation of the resolution plan. FE reported earlier that the resolution plan for Suzlon may be implemented by June 30, as lenders and promoters have been able to resolve differences on the deal structure.

In an intimation to stock exchanges, Suzlon said that the board has approved allotment of 99,71,76,872 equity shares to lenders. “99,71,76,872 fully paid up equity shares having a face value of Rs 2 each aggregating to Rs 16, i.e. at an aggregate consideration of Rs 1 per lender,” Suzlon said. The board has also approved conversion of Rs 4,100-crore debt into optionally convertible debentures. Apart from this, the board has approved allotment of warrants to lenders.