State Bank of India (SBI) has approved a restructuring plan proposed by Suzlon Energy Ltd as the first step towards saving the stressed wind power firm, sources said. Suzlon’s debt of Rs 12,700 crore will be converted into sustainable and unsustainable debt and will be repaid over 20 years.
Total 32-35 per cent of sustainable debt will be repaid over the first 10 years, after that unsustainable debt which includes non-convertible debentures compulsorily preference shares (CCPs), will be repaid. This means that the lender will have to take a haircut of 65 per cent on the debt.  Moreover, Sustainable debt is that where the principal value of all debts owed to institutional lenders can be repaid if the future cash flows remain at their current level. Lenders led by SBI will pick up 10 per cent stake in Suzlon immediately on issue of shares and 49 per cent stake in its subsidiary, Suzlon Global Services Ltd (SGSL), after conversion of CCPs in 20 years. SGSL, a 100 per cent subsidiary of Suzlon, is involved in designing and manufacturing of equipment for generating wind energy.
The promoter has promised to bring in the equity of Rs 275 crore and other lenders for working capital loans, sources said. Also, Tulsi Tanti the promoter is supposed to sell off some of the assets of the company including the headquarters in Pune.
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