Suzlon Group plans long-term debt restructuring

Suzlon Group, the world's fifth-largest wind turbine maker, has initiated discussions with its senior secured lenders to restructure its debt with a maturity period of ten years under the CDR mechanism.

This also includes a two-year moratorium on principal and interest payments on term-debt.

''The company has, in consultation with its senior secured lenders, taken the decision 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,'' Suzlon Group Chief Financial Officer Kirti Vagadia said.

''This is an important step towards stabilising 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,'' Vagadia added.

Additionally, the company's engagement with its bondholders continues to be both constructive and progressive. Suzlon expects that an acceptable solution for all stakeholders will be reached at the earliest possible date.

''Considering our overall business outlook, we recognise that despite strong business fundamentals and a $7.2 billion 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,'' he added.