Restructuring at Suzlon Energy Ltd

Vishwanath, S R and Singh, Kulbir and Arora, Jaskiran and Prasad, Durga (2017) Restructuring at Suzlon Energy Ltd. The Case Journal, 13 (2). pp. 1-31.

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Abstract

On October 29, 2012, Suzlon Energy Ltd, one of the top five wind energy companies in the world, announced that its senior secured lenders had agreed to restructure its debt. The plan was to get a moratorium on the payment of interest and principal. Upon announcement Suzlon shares closed 10.7 percent higher at INR17.10[1]. Kirti Vagadia, the Chief Financial Officer of Suzlon Group said[2]: Our senior secured lenders are supportive of our long-term business plan, and our efforts to consolidate our overall debt to achieve a sustainable capital structure. This is an important step towards stabilizing our business. Considering our overall business outlook, we recognize that despite strong business fundamentals and a $7.2 b order book, the timeline of the corporate debt restructuring process will continue to impact performance.Under the debt restructuring plan lenders agreed to enhance working capital facilities by INR18 b($350 m) and convert interest of INR15 b ($270 m) during the moratorium period into equity over two years. From the perspective of the CFO and bankers at SBI Capital Markets (Suzlon’s advisor), the task was to choose a plan of action from the available alternatives such as asset sales and raising equity to restore the financial health of the company.

Item Type:	Article
Uncontrolled Keywords:	Restructuring; Suzlon Energy Ltd Case;
Subjects:	Finance
Divisions:	Finance and Strategy
Depositing User:	Mr. Ramesh Kamath
Date Deposited:	09 Sep 2018 05:11
Last Modified:	14 Feb 2019 06:33
URI:	http://tapmi.informaticsglobal.com/id/eprint/17

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