October 29, 2012

Suzlon Group plans long-term debt restructuring

  • Corporate Debt Restructuring (CDR) proposal submitted
  • 10 year long-term repayment period for debt, including two year moratorium on principal and term-debt interest payments
  • Additional working capital facilities
  • FY2012-13 guidance suspended

Pune: Suzlon Group, the world’s fifth largest* wind turbine maker, has initiated
discussions with its senior secured lenders and plans to restructure its debt with a
maturity period of ten years under the CDR mechanism, including a two-year
moratorium on principal and interest payments on term-debt.

Mr Kirti Vagadia, Chief Financial Officer – Suzlon Group said: “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.

“This is an important step towards stabilizing 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.
“Additionally, our ongoing engagement with our bondholders continues to be both
constructive and progressive, and we expect that an acceptable solution for all
stakeholders will be reached at the earliest possible date.

“Considering our overall business outlook, we recognize that despite strong business
fundamentals and a US$7.2 bn 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.”

Contact Us

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