Meeting of Suzlon lenders inconclusive

The meeting of the consortium of lenders to Suzlon Energy held on December 31 ended without a final decision on the approval of its debt recast package, according to a banker close to the development. Though Suzlon's R10,829 crore debt has been admitted into the corporate debt restructuring (CDR) cell, it has not yet received the requisite mandate from the majority of the bankers.

The company's proposed debt recast plan has been prepared by the monitoring committee or main lenders including SBI and IDBI Bank. The approval of a CDR package requires the mandate from 75% of lenders by value and 60% of lenders in number. SBI with an exposure of around R3,500 crore, IDBI Bank at R1,700 crore, Bank of Baroda at R1,000 crore and Indian Overseas Bank at R1,000 crore are the largest lenders. Some of the other lenders include ICICI Bank, Axis Bank, Dena Bank and Yes Bank.

The banker said over the next few days the lenders would be communicating to the CDR cell their final decision over whether or not they approve the package. In case the package is not approved the bankers will have to meet again to renegotiate the package.

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