Suzlon's board gives nod to debt restructuring plan

The board of directors of Suzlon Energy Ltd (BOM:532667) has given the green light to the debt restructuring plan of the troubled Indian wind turbine maker, the company announced last week.

As previously reported by local media, Suzlon intends to restructure INR 127 billion (USD 1.75bn/EUR 1.57bn) worth of debt. According to a report by the Financial Express, Suzlon's plan involves a 60% haircut for lenders.

In a bourse filing, Suzlon said it will issue to its lenders about 1 billion equity shares of the company, each of INR 2, plus up to 410,000 of 0.01% secured optionally convertible debentures of INR 100,000 each, and as many as 500 million warrants of INR 1 each. The board also cleared the issuance, if required, of equity shares or equity-linked instruments to an extent of INR 10 billion.

In addition, the filing says that the company will be able to dispose of certain investments and assets, without specifying which exactly. The plan also envisages the issuance of equity shares or compulsory convertible debentures (CCD) to promoters in a move that would raise up to INR 4 billion.

Meanwhile, Suzlon’s board also approved the appointment of Sameer Shah as an independent director for five years, starting on February 27. Shah was previously the chief financial officer (CFO) and Head of ICT for Petroleum, Chemicals & Mining Company and before that served as a managing director heading the Equity Services Business for Asia Pacific and the Arabian Gulf countries at Deutsche Bank.

(INR 10 = USD 0.137/EUR 0.124)

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