Suzlon Group, a wind turbine manufacturer headquartered in India, plans to restructure its debt under the Corporate Debt Restructuring (CDR) mechanism with a ten-year maturity period.
The proposal includes a two-year moratorium on principal and interest payments on term-debt.
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Suzlon Group chief financial officer Kirti Vagadia noted that the company has consulted with its senior secured lenders to undertake a debt restructuring exercise under the CDR mechanism.
"Our senior secured lenders are supportive of our long-term business plans, and our efforts to consolidate our overall debt to achieve a sustainable capital structure.
"This is an important step towards stabilizing our business by enhancing liquidity and injecting additional working capital. We believe this will help us to safeguard the interests of our key stakeholders, including customers and vendors," he said.
Vagadia further added that the company expects to reach an acceptable solution for all stakeholders at the earliest.
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By GlobalData"Considering our overall business outlook, we recognize that despite strong business fundamentals and a US$7.2 bn orderbook, liquidity constraints over the first half of the fiscal, a volatile market environment, and the timeline of the CDR process will continue to impact performance.
"Taking this into account, the Management Team has decided to suspend guidance for the current fiscal, however, we remain confident of the company’s performance over the mid-term, and of returning the business to a position of strength," Vagadia enumerated.
