According to reports, Suzlon Energy Ltd surged over 2 per cent in morning trade on Friday after ET NOW reported that the wind and power solution provider has finally got the terms and conditions of its corporate debt restructuring (CDR) package approved.
At 10:20 am, Suzlon pared some of its morning gains and was trading 0.8 per cent higher at Rs 18.50 in a weak market. It has hit a high of Rs 18.80 and a low of Rs 18.40 in trade Friday.
ET NOW quoting two senior bankers familiar with the developments said, “Suzlon is looking at selling two of its domestic subsidiaries including SE Forge as well as its wholly-owned subsidiary in China called Suzlon Energy (Tianjin) Ltd.”
“Under the CDR package, lenders are believed to have agreed to provide Suzlon with working capital of Rs 1,500 crore to keep its operations running. Bankers which have close to Rs 13000 crore exposures have also agreed to give the company a ten-year extension on the loan repayment including a two-year moratorium,” ET NOW reported.
“The interest rate under the CDR package has been fixed at 11%, said a senior PSU banker familiar with the development. The CDR cell is expected to give the restructuring package a formal sign off by the second week of January,” said the report.
The promoters will also be required to pump in Rs 2,500 crore of equity to the company by March 2016, said a source. In response to ET NOW’s query on the developments, Suzlon’s official spokesperson said, “what we can say is that the CDR process is going well, and that we anticipate making an announcement as soon as all the details have been finalized, agreed and signed-off.”