Lawstreet Journal

State Bank Of India Gives Approval To Suzlon's Debt Revamp Proposal

Lawstreet Journal 20 Feb 2020 5:32pm

Image courtesy: Lawstreet Journal Business State Bank Of India Gives Approval To Suzlon's Debt Revamp Proposal

As reported on 20th February, 2020, State Bank of India (SBI) has approved a restructuring plan proposed by Suzlon Energy Ltd as the first step towards saving the stressed wind power firm, according to two bankers familiar with the matter. Suzlon's debt of Rs. 12,700 crores will be converted into a sustainable and unsustainable debt plan that is likely to be repaid over 20 years. The sustainable debt is 32-35% of the total which will be repaid over the first 10 years, a debt where the principal value of all debts owed to the lender's can be repaid if the future cash flow remains at their current level. 

It has been further put forth that the lenders led by SBI will pick up the stakes of 10% in Suzlon and stakes of 49% in it's subsidiary - Suzlon Global Services Ltd. (SGSL). An equity of Rs. 275 crores has been promised. 

The promoter has assured bankers that there will be an orderly sale and that everybody will be allowed to exit over the next three years,"

SBI's approval is the first step to the resolution process wherein the plan is being circulated among other lenders for their approval under the inter-creditor agreement (ICA). The plan must be approved by 66% of the lenders in the consortium. The plan is likely to be implemented by 31st March, 2020 but bankers have mentioned that it might get extended. 

Nearing the end of 2019, a net loss of Rs. 743 crores was reported. The group has continued to incur… Continue Reading...


Tagged: State Bank Of India  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com