Suzlon Group has received formal approval of its proposal for the restructuring of domestic debt by the Empowered Group of Corporate Debt Restructuring (CDR) Cell. The company's domestic lenders, a consortium of 19 banks has approved CDR package of Rs 9,500 crore / $1.8 billion.
The package includes a two year moratorium on principal and term-debt interest payments; a three per cent reduction in interest rates; six month moratorium on working capital Interest; as part of the package Rs 1,500 crore / $270 million (two year's interest payment during moratorium) will be converted into equity / equity linked instrument over the next two years to bring stronger financial stability; and a 10 year door-to-door back-ended repayment plan.
The package also includes an enhancement of working capital facilities, by approximately Rs 1,800 crore / $350 million, allowing the company to accelerate the execution of its strong order book.
