Suzlon's $1.8-Bn Debt-recast: A Unique Plan
The CDR package of $1.8 billion (Rs 9,500 crore) includes a two year moratorium on principal and term-debt interest payments; a three percent reduction in interest rates and six months moratorium on working capital interest. As a part of the package, Rs 1,500 crore (two year's interest payment during moratorium) will be converted into equity or equity linked instrument over the next two years to bring stronger financial stability and a 10 year door-to- door back-ended repayment plan. In January, Suzlon received approval from a consortium of 19 banks to recast its debt.
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