Sunday, January 20, 2013
Suzlon Energy Ltd, gets a Moratorium period of 2 (two) years on both Interest & Principal Payments
Suzlon Energy Ltd, world's 5th largest wind turbine producer, received an approval for its debt restructuring package, from the lenders.
Sources said that lenders have approved Suzlon's INR 9600 crore worth corporate debt restructuring package.
Sources added that “As per the agreement, the company will repay USD 1 billion dues to lenders by March 2016."
Sources further added that the company will get a moratorium period of two years on both interest and principal payments. There will be no additional funding from banks, but lenders have decided that during this two year moratorium period, when the interest will be waived off, it will be converted into a term loan. This term loan will again be converted into equity over these two years.
So, around INR 1600 crore of loans will be converted into equity over that two year period. The promoters have also agreed to infuse INR 250 crore into the company, INR 125 crore in the first year and the next INR 125 crore in the second year.
Source: Moneycontrol.com (edited)