Wind energy major Suzlon has announced the formal approval of its proposal to restructure its domestic debt by the Empowered Group of Corporate Debt Restructuring (CDR) Cell.

The company’s domestic lenders, a consortium of 19 banks, approved the company’s CDR package of Rs 9,500 crore ($1.8 billion).

The package includes a two-year moratorium on principal and term-debt interest payments; a 3 per cent reduction in interest rates; 6-month moratorium on working capital interest. As part of the package Rs 1,500 crore ($270 million) which is two year’s interest payment during moratorium will be converted into equity / equity linked instrument over the next two years. There is also a 10-year door-to-door back-ended repayment plan.

The package also includes an enhancement of working capital facilities, by approximately Rs 1,800 crore allowing the company to accelerate the execution of its order book.

The Group’s promoters will also bring in equity to the extent of Rs 250 crore into the company in stipulated timeframe, including Rs 62 crore that has already been infused.

Kirti Vagadia, Chief Financial Officer, Suzlon Group, said, “This is a major step forward in our efforts to achieve a sustainable capital structure.”

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