Suzlon Finishes $1.8 Billion Debt Restructuring With Share IssueSally Bakewell
Suzlon Energy Ltd., the Indian wind-turbine maker that failed to repay convertible debt last year, said it implemented its 95 billion rupee ($1.8 billion) debt reorganization plan and issued new shares to lenders.
Suzlon completed an issue of 302.4 million shares at 18.51 rupees each to its lenders on a preferential basis, the first phase of its planned allotment, the Pune-based company said today in a statement.
The share issue was part of the $1.8 billion debt restructuring plan the company’s domestic lenders -- comprising a group of 19 banks -- approved in January after Suzlon failed to pay $209 million of foreign-currency convertible notes on Oct. 11. It was India’s biggest convertible-bond default.
The plan included a two-year moratorium on principal and interest payments, a proposal to reduce the interest rate by 3 percent, an extension of repayment by eight years after the moratorium begins Oct. 1 and equity allotment to its lenders, according to the statement.