April 23, 2013

Suzlon Group announces completion of CDR; allotment of shares to lenders

  • Master Restructuring Agreement (MRA) signed, CDR fully implemented
  • First phase of issuance of new shares to lenders by way of preferential allotment complete
  • Promoters infusion of Rs 125 cr / ~US$ 23 mn under CDR requirements completed

Pune: Suzlon Group, the world’s fifth largest* wind turbine maker, today announced the
full implementation of its CDR package with the signing of the Master Restructuring
Agreement (MRA), and the preferential allotment of equity shares to its lenders.

Suzlon announced its plans to enter into restructuring of its debt in October, 2012 under
India’s CDR mechanism. The package of ~Rs 9,500 cr / US$ 1.8 bn was formally
approved in January, 2013 by the company’s domestic lenders, a consortium of 19
banks. The package covers a 10 year door-to-door back-ended repayment plan;
reduction in interest rates by approximately three per cent; a two year moratorium on
principal and term-debt interest payments; enhancement of working capital facilities, and
equity allotment to the CDR lenders

The first phase of the allotment, for 30.24 crore shares at an issuance price of Rs 18.51
per-share, to CDR lenders was completed today. The new shares issued will be subject to
a lock-in period of one year from the date of allotment.

Speaking on the development, Mr. Kirti Vagadia, Group Head – Finance, said: “We
are pleased to report today the implementation of our CDR package. We are sincerely
grateful to our lenders for their confidence in the company and our business plan by
extending incremental working capital support, speedily implementing the package, and
participating in equity.

“The rapid progress of the past several months – including the formal approval of the
CDR in just over two months, signing the MRA and issuance of equity, all in six months,
would not have been possible without the support of our lenders, and all our other
stakeholders during this critical phase.

“Our focus is now 100 per cent on normalizing business operations, driving results from
Project Transformation, focusing on the execution of our enviable US$ 7 bn orderbook,
and delivering a healthy performance in FY2013-14.”

Contact Us

Murlikrishnan Pillai
Tel: +91 (20) 67025000
E-mail: ccp@suzlon.com