Faced with a 60% haircut on their exposure, lenders to Suzlon Energy are unwilling to loan the company more working capital, a decision that is delaying the proposed restructuring plan, persons familiar with the development told FE. Also, since the 210-day period, within which banks needed to come up with the resolution plan, were over last month, banks will need to make extra provisions for the exposure in the March quarter. Of the 18 members in the consortium, some lenders have already made full provisions for the account.
On January 7, Suzlon disclosed to the stock exchanges that the total amount due to financial creditors was Rs 12,785 crore. The promoters have suggested a haircut to the tune of Rs 7,000 crore. The company requires an estimated Rs 1,800 crore of working capital to remain a going concern.
