Continuously Working On A Resolution Plan, Says Suzlon
Wind-turbine maker Suzlon Energy Ltd. said the company is working on a resolution plan and lenders have time till January next year to work on a sustainable resolution plan before taking any extreme steps.
"The company is continuously working on a resolution plan with the lenders and has also submitted a restructuring plan, which envisages segregating total debt into sustainable debt and unsustainable debt," Suzlon Energy said in a filing to BSE in response to a clarification sought by the bourse on a news item.
This comes after BloombergQuint earlier reported that the lenders to firm are leaning towards initiating recovery proceedings after attempts to draw new investors to the company fell through.
The filing further added that "the lenders have already signed inter-creditor agreement and have time till January 2020 to work on a sustainable resolution plan before taking any extreme steps". The proposed restructuring is under consideration by the lenders, it added.
The lenders have appointed process advisors, rating agencies and other professionals for conducting techno-economic viability study and ratings. The company is also in discussions with the foreign currency convertible bond holders for settlement of the FCCB borrowing, the filing said.
Suzlon Energy had reported widening of its consolidated net loss to Rs 777.52 crore in the quarter ended Sept. 30, 2019. The company had reported a net loss of Rs 625.76 crore in the corresponding quarter last fiscal, Suzlon Energy had said.
"The group has continued to incur losses during for the current period, primarily due to lower volumes and finance costs and the negative net worth of the Group is Rs 9,606 crores as at Sept. 30, 2019," the company had said.