Canindia News

Suzlon offers lenders to take 68% haircut to recast debt

New Delhi, Jan 3 (IANS) Cash-strapped Suzlon Energy Ltd has offered banks to take 68 per cent haircut to restructure its debt but lenders are not impressed by the proposal, sources said.

This means the lenders taking a hit of Rs 7,684 crore and settling a Rs 11,300 crore loan for Rs 3,616 crore.

When contacted, a Suzlon Energy spokesperson declined to comment on the proposed offer for loan recast.

“We have submitted a restructuring plan and it is being reviewed by the consortium of banks. We would not be able to make any specific comment on this,” he said.

While announcing its second quarter result in November, Suzlon CFO Swapnil Jain had said that the company was committed and tirelessly working along with the lenders towards a holistic debt resolution.

With the company giving a fresh proposal, the banks would now assess if it made sense for them or taking the bankruptcy court would be more beneficial.

Suzlon Energy shares closed 19.65 per cent higher on the BSE on Friday to touch Rs 2.74 a piece over the previous day.

Suzlon has been slipping into deep financial distress with the company revenue falling and losses mounting. This has severely impacted its ability to pay back loans.

–IANS

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