Reports indicate that lenders of the debt-ridden Suzlon Energy may meet soon to take a final call on the corporate debt restructuring (CDR) exercise.
Suzlon has asked bankers to provide the company with fresh loans of Rs 2,000 crore to meet payment requirements, Rs 3,000 crore as a working capital loan and an additional Rs 1,500 crore to meet interest payment obligations.
Recently, the firm wind turbine maker received the in-principle approval for restructuring its debt of over Rs 14,000 crore but reports suggest that bankers may not give in to all the company’s demands.
It is learnt that the firm demanded capital to the tune of Rs 6,500 crore from the lenders as part of the CDR exercise, in addition to asking bankers for a two-year moratorium and fixing the interest rate at 11 percent.
The CDR exercise will reportedly involve a sacrifice on the part of lenders to the tune of Rs 1,000 crore. Of this, the promoter will have to bear Rs 250 crore. The promoter will have to make an upfront payment of Rs 125 crore once the bankers agree on the terms for the restructuring to even start.
Suzlon has a debt of over Rs 10,500 crore to a consortium of Indian banks, led by State Bank of India. The company also has two overseas subsidiaries which owe Indian banks Rs 3,500 crore.
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