Suzlon Completes Debt Restructuring With Rs 392 Crore Infusion

Suzlon Group has successfully completed its debt restructuring, following a cash infusion of Rs 392 crore by its key promoters and shareholders.

Indian wind energy major Suzlon has announced that it has successfully completed its debt restructuring, following a cash infusion of Rs 392 crore by its key promoters and shareholders.

In May, the group had announced that it had got a new life after its shareholders had approved its debt restructuring plan, helping it get back into business again. 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.

Tulsi Tanti, Founder and CMD, Suzlon Group, said “the consortium of lenders led by State Bank of India and the company have worked together to protect the interests of all the stakeholders involved, thereby protecting the Indian Wind Energy sector, saving thousands of direct and indirect jobs, ensuring the survival of a large number of MSME vendors and protecting ~13 GW of operating wind energy assets of the nation. This initiative takes us a step forward to stay Atmanirbhar in the manufacturing of wind turbines and its components, making India the supply chain hub for the global wind sector. We sincerely appreciate the support of all the lenders led by SBI, FCCB holders, our shareholders, vendors, customers, and Suzlon family for their unwavering trust and confidence in the Company in challenging times and during the unprecedented COVID-19 crisis.”

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

Swapnil Jain, CFO, said, “this Debt Restructuring will ease the pressure on our cash flows significantly and give us headroom for ramping up business operations. We have reduced our fixed cost steeply and brought down the interest costs by more than 70 percent. This has resulted in a substantial reduction in the break-even point from pre-restructuring levels ensuring a long term sustainable business case. It improves our overall competitiveness in the market place and now Suzlon is back to business from a position of strength.”

J P Chalasani, Group CEO, said, “we are pleased to have implemented our Debt Restructuring with unanimous approval from the consortium lenders and 99.9 percent of our FCCB holders. Capital infusion of Rs 392 crore by promoters, key shareholders, and various stakeholders demonstrates their commitment and confidence in Suzlon. The wind energy sector in India is at an inflection point and our Debt Restructuring has resulted in a stronger balance sheet enabling the Company to focus on capturing the tremendous growth potential in the Indian wind energy sector.”