Shareholders okay Suzlon's $1.8 bn CDR package
New Delhi: Clearing the decks for its debt recast, wind turbine major Suzlon Energy on Friday said the company's shareholders have approved the USD 1.8 billion corporate debt restructuring package.
"The shareholders have approved the Suzlon's Corporate Debt Restructuring (CDR) package," the company said in a filing to the stock exchange.
The CDR package of USD 1.8 billion (Rs 9,500 crore) includes a two year moratorium on principal and term-debt interest payments; a three percent reduction in interest rates and six months moratorium on working capital interest.
As a part of the package, Rs 1,500 crore (two year's interest payment during moratorium) will be converted into equity or equity linked instrument over the next two years to bring stronger financial stability and a 10 year door-to-door back-ended repayment plan.
In January this year, Suzlon received approval from a consortium of 19 banks to recast its debt.
Mounting debt and tough market conditions, amid sluggish global economy, had adversely impacted Suzlon's business.
Suzlon shares closed down 0.37 percent at Rs 13.43 on BSE today.
The Suzlon Group is ranked as the world's fifth largest wind turbine supplier, in terms of cumulative installed capacity, at the end of 2011.
The company's global spread extends across Asia, Australia, Europe, Africa and North and South America with installations of over 20,000 MW and operations across 32 countries and a workforce of approximately 13,000.