Debt-Ridden Suzlon Working on a Resolution Plan

Suzlon Energy is working on a resolution plan and lenders have till January to work on a sustainable resolution plan before taking any extreme steps.

Wind-turbine maker Suzlon Energy has confirmed that the company is working on a resolution plan and lenders have time till January next year to work on a sustainable resolution plan before taking any extreme steps.

“The company is continuously working on a resolution plan with the lenders and has also submitted a restructuring plan, which envisages segregating total debt into sustainable debt and unsustainable debt,” the company issued in a filing to BSE in response to a clarification sought by the bourse on a news item.

The filing further added that “the lenders have already signed the inter-creditor agreement and have time till January 2020 to work on a sustainable resolution plan before taking any extreme steps”.

The filing further added that “the lenders have already signed an inter-creditor agreement and have time till January 2020 to work on a sustainable resolution plan before taking any extreme steps”. The proposed restructuring is under consideration by the lenders, it added.

The lenders have appointed process advisors, rating agencies and other professionals for conducting techno-economic viability study and ratings. The company is also in discussions with the foreign currency convertible bond (FCCB) holders for settlement of the FCCB borrowing, the filing said.

“The Group has continued to incur losses during for the current period, primarily due to lower volumes and finance costs and the negative net worth of the Group is Rs 9,606 crores as of September 30, 2019,” the company had said.

Recently, the company had reported the widening of its consolidated net loss to Rs 777.52 crore in the quarter ended September 30, 2019. The company had reported a net loss of Rs 625.76 crore in the corresponding quarter last fiscal. Its revenue from operations fell to Rs 803.09 crore during the quarter under review as against Rs 1,194.99 crore in the year-ago period.