Suzlon Group said it has implemented corporate debt restructuring (CDR) package with the signing of a Master Restructuring Agreement (MRA) and preferentially alloted shares to its lenders as part of the plan.
As a part of the package, R1,500 crore, which is two-year interest payment during moratorium, will be converted into equity or equity linked instrument over the next two years to bring stronger financial stability and a 10-year door-to-door back-ended repayment plan. The package includes a cut in interest rates by 3%, a two-year moratorium on principal and term-debt interest payments. It also covers enhancement of working capital facilities and equity allotment to the lenders.
The first phase of the allotment for 30.24-crore shares at an issuance price of R18.51 per-share, to CDR lenders, was completed on Tuesday. The new shares issued will be subject to a lock-in period of one year from the date of allotment, Suzlon Energy said in a statement.
In March, Suzlon had raised $647 million in bonds overseas at a coupon of 4.97% to the US treasury, becoming the first domestic company to attract investors while already in debt recast.
“Our focus is now 100% on normalising business operations, driving results from project transformation, focusing on the execution of our $ 7 bn orderbook, and delivering a healthy performance in FY2013-14,? Kirti Vagadia, Group Head ? Finance, said.
