Suzlon bondholders approve FCCB restructuring proposal

Shares of the company were trading at Rs 26.25, up 3.75% on the BSE

Wind turbine maker Suzlon Energy today said its bondholders have approved the proposed restructuring of existing bonds including the terms and conditions of the new FCCBs.

"Pursuant to the approvals received, all the October 2012 bonds and July 2014 bonds will cease to exist and will be substituted by the new FCCBs (foreign currency convertible bonds) on July 15, 2014, subject to the satisfaction of certain conditions precedent," Suzlon said in a statement.

The company had earlier announced receipt of approval from the Corporate Debt Restructuring Empowered Group and the Reserve Bank of India for the restructuring, the statement said.

In respect of the $175 million April 2016 series, only approximately $28.8 million in principal value will remain outstanding; the remaining holders have opted to substitute their existing bonds with the new FCCBs, it added.

"The bondholders, by approving the restructuring have reposed confidence in Suzlon and paved the path for growth. With optimism in the global economy coupled with the company's strategic developments, we are confident of maintaining sustainable growth in the next three years," Chairman Tulsi Tanti said.

"With this, Suzlon now successfully completes its last leg of comprehensive liability management programme that we initiated in 2012. In the circumstances, the agreed bond restructuring package is an optimum solution for all our stakeholders," Kirti Vagadia, Group Head - Corporate Finance, Suzlon Group, said.

Shares of Suzlon were trading at Rs 26.25, up 3.75% on the BSE.