Back to Biz: Suzlon’s Shareholders Okay Debt Restructuring Plan

Back to Biz: Suzlon’s Shareholders Okay Debt Restructuring Plan

Tulsi Tanti formed wind turbine maker Suzlon Energy has now got a new life after its shareholders have approved its debt restructuring plan, and helping it to get back into the business again.

Suzlon Energy

The Pune-based company had initiated the process of the postal ballot for seeking approval of its shareholders by way of ordinary and special resolutions on April 18, 2020, as it had been working for a comprehensive restructuring exercise with an aim to reduce its debt obligations.

Now, the wind energy turbine manufacturer had informed the stock exchange that “the shareholders have approved all the resolutions proposed by the company vide postal ballot notice dated April 18, 2020, by the requisite majority.” The move has paved the way for the company’s debt restructuring plan.

The voting has been done through remote e-voting process by the shareholders, in which they approved all the 10 resolutions of the company.

Commenting on the significant development for the company, Suzlon tweeted, “an important milestone has been achieved, with the Shareholders consent, this clears the path for the completion of our holistic Debt Restructuring.”

Speaking on the shareholders’ approval, Swapnil Jain, CFO of Suzlon, said in the statement, quoted PTI report “we are grateful to all our lenders, bondholders and key stakeholders for having faith and standing by the company to work towards a holistic debt resolution in these challenging times.”

Jain further said, “with trimmed debt and new equity infusion, the capital structure of the company will get fixed, and we shall be back in business.”

Suzlon Energy’s total net debt stood at Rs 12,906 crore as of December 2019, including outstanding FCCB (bonds) of USD 172 million. This debt-restructuring will help in correcting the capital structure of the company and reduce the interest burden substantially.

“Stakeholders have demonstrated confidence in the company by confirming to infuse equity. The company is set to begin operations post completion of formalities and end of current lockdown in the country,” said J P Chalasani, Group CEO of Suzlon, quoted PTI.

Moreover, the lenders and bondholders had approved the company’s all 10 restructuring proposals by more than 94 percent voting in favour of restructuring the debt.

Meanwhile, shares of the company closed at Rs 2.88 apiece, up 4.73 percent, from the previous close on the exchange.

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Manu Tayal

Manu is an Associate Editor at Saur Energy International where she writes and edits clean & green energy news, featured articles and interview industry veterans with a special focus on solar, wind and financial segments.