The promoters of debt-laden Suzlon Energy sold 2.11 per cent stake to raise Rs 63 crore. This was part of the corporate debt restructuring (CDR) plan the company is negotiating with a consortium of banks.

Lenders had asked the company’s promoters to bring in Rs 250 crore if they were to restructure the loans.

CDR mechanism

The promoters would infuse the funds into the company by suitable mode at the earliest, subject to applicable law, to comply with equity infusion requirement under the CDR mechanism, said the Pune-based company in a statement.

Tulsi Tanti, Chairman and Managing Director, on behalf of the promoter group on Wednesday informed that the promoters have sold 3.75 crore shares.

The company plans to use these funds for business operations and debt reduction, it said. Following the stake sale, the promoters’ holding in the company has come down to 50.65 per cent.

Suzlon has a debt of over Rs 13,000 crore including Foreign Currency Convertible Bonds obligations.

A major portion of debt was accumulated to acquire Germany's REpower Systems and Belgium-based gearbox maker Hansen Transmissions.

Last year, Suzlon sold its stake in Hansen to ease its debt burden, but it provided little relief as interest cost continued to rise.

In October, bond holders had rejected Suzlon’s proposal seeking a four-month extension to repay overseas debt worth about $221 million. State Bank of India is estimated to have an exposure of Rs 3,500 crore in Suzlon.

The bank had suggested merging Suzlon’s German subsidiary REpower with the group to improve profitability.

Financial performance

Suzlon registered a net loss of Rs 546 crore in the September quarter against a net loss of Rs 19 crore in the same period last year.

Total income decreased to Rs 735 crore from Rs 2,029 crore.

The shares of the company were down two per cent at Rs 18 on Wednesday.

> suresh.iyengar@thehindu.co.in

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