Suzlon Energy Seeking CDR Corporate Debt Restructuring with the Assistance of the Sate Bank of India SBI

Suzlon Energy is seeking to restructure

its debt after it failed to pay a $200 million convertible bond redemption earlier this month. The world’s 5th largest wind turbine manufacturer is reportedly negotiating with banks for a two-year suspension of principal and interest payments. Talks with senior secured lenders are ongoing to restructure the company’s debt which, at the group level, stands at $2.45 billion at the end of June.

 

State Bank of India is the lead lender to the company, with an exposure of about $659 million. Indian banks, particularly state lenders, are inclined to assist big firms go through challenging times in the business by easing loan terms via a CDR corporate debt restructuring program.

Suzlon earlier this month, sought bondholder’s approval to a four-month repayment extension. This was rejected, however. The company said there’s an ongoing discussions with bondholders and is reportedly progressing to the right direction. The firm has been at the losing end of the business for the past three years and has been struggling in recent years due to a slowdown in global sales as well as its debt.