Suzlon Energy shareholders approve debt restructuring plan

Suzlon Energy on Wednesday said its shareholders have approved its debt restructuring plan, helping it get back into business.

Suzlon Energy had been working for a comprehensive restructuring exercise to reduce its debt obligations.

Shareholders, through postal ballot, approved the resolutions proposed by the company for paving the way for debt restructuring.

"Shareholders have approved all the resolutions by postal ballot. Stakeholders demonstrate confidence in the company by confirming to equity infusion. The company to slowly begin operations as restrictions of the lockdown are eased," a Suzlon Energy statement said.

Swapnil Jain, CFO, Suzlon, said in the statement, "We are grateful to all our lenders, bondholders and key stakeholders for having faith and standing by the company to work towards a holistic debt resolution in these challenging times.

"With trimmed debt and new equity infusion, the capital structure of the company will get fixed, and we shall be back in business.

Shareholders approved all 10 resolutions through postal ballot that would pave the way for debt restructuring of the company.

The company's total net debt as of December 2019 stood at Rs 12,906 crore that includes outstanding FCCB (bonds) of USD 172 million.

The debt-restructuring will help in correcting the capital structure of the company and reduce the interest burden substantially.

J P Chalasani, Group CEO, said, "Stakeholders have demonstrated confidence in the Company by confirming to infuse equity. The Company is set to begin operations post completion of formalities and end of current lockdown in the country.

The company's extraordinary general meeting was scheduled on March 24. But, it could not take place due to the nationwide lockdown. Therefore, the company sought approval of shareholders on the 10 resolutions through postal ballot.

The lenders and bondholders had approved the company's restructuring proposal by 100 per cent and 99.9 per cent voting, respectively, in favour of restructuring the debt.