Why debt restructuring alone cannot save Suzlon Energy
Suzlon Energy Ltd gained nearly 9% on Thursday following reports that a large lender has approved a debt restructuring scheme, segregating sustainable and unsustainable debt, and allowing the firm to repay it over 20 years. Mint also reported the development.
The company’s net worth is negative and it has defaulted on loan repayments. Its gross earnings are not even sufficient to meet employee and operating expenses, leave alone finance costs. In the nine months to December, it had posted an operating loss (before interest and depreciation) of ₹273 crore, against a profit of ₹265 crore a year ago.
