Suzlon Energy said that its debt resolution plan is not dependent on a single option and that the company is working with its bankers to reduce its debt.
The company informed stock market on Monday “We wish to clarify that Suzlon’s debt resolution and revival plan have never been dependent on any single option. We wish to reiterate that we continue to work on significant debt reduction alongside with our lenders.” Suzlon’s informed in response to reports that its one-time settlement offer to bankers is called off as potential investor has pulled out.
According to ET the loss making wind turbine maker defaulted on loan repayments, paying overdue creditors and FCCB repayment. Its loans were categorised as non-performing assets by lenders and, therefore, the company made a one-time settlement offer to its bankers that entailed selling a majority stake in the company to raise funds to repay debt. Two international companies had shown interest at different stages, but both have subsequently pulled out.
Suzlon had net term debt of Rs 7,751 crore as on June-end, which included a foreign currency convertible debt. Its working capital loans were at Rs 4,000 crore, noted the publication.