Clearing the decks for its debt recast, Suzlon Energy said on Friday that the company’s shareholders have approved the $ 1.8 billion corporate debt restructuring package.
In filing to the stock exchange the company said, “The shareholders have approved the Suzlon’s Corporate Debt Restructuring (CDR) package.”
The CDR package of $ 1.8 billion (Rs 9,500 crore) includes a two year moratorium on principal and term-debt interest payments; a three percent reduction in interest rates and six months moratorium on working capital interest.
As a part of the package, Rs 1,500 crore (two year’s 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.
In January this year, Suzlon received approval from a consortium of 19 banks to recast its debt.
Mounting debt and tough market conditions, amid sluggish global economy, had adversely impacted Suzlon’s business.