Suzlon Energy Gets Shareholders’ Nod For Debt Restructuring
Suzlon Energy Ltd. on Tuesday got shareholders' nod for its debt restructuring plan.
All 10 resolutions through postal ballot that would pave the way for debt restructuring of the company are approved with requisite majority through post ballot, according to a regulatory filing.
Certain terms of debt restructuring proposal require approval of the shareholders. These resolutions will help the company comply with the requirement of debt restructuring. The company's total net debt as per the October-December quarter results stood at Rs 12,906 crore that includes outstanding FCCB (bonds) of $172 million.
The company's extraordinary general meeting was scheduled on March 24. But, it could not take place due to the nationwide lockdown. Therefore, the company had sought approval of shareholders on these 10 resolutions through postal ballot.
Suzlon has been working for a comprehensive restructuring exercise to reduce its debt obligations. The lenders and bondholders had approved the company's restructuring proposal by 100 percent and 99.9 percent voting, respectively, in favour of restructuring the debt. The debt restructuring will help in correcting the capital structure of the company and reduce interest burden substantially.