The Indian manufacturer will present a restructuring plan swapping its INR 113 billion ($1.6 billion) of outstanding debt with INR 36 billion of new debt — a discount of 68%, Bloomberg reports, citing “people familiar with the matter”.
Lenders had previously expressed a willingness to take a 50% discount, and are due to meet with Suzlon next week, according to the financial newswire.
Windpower Monthly approached Suzlon for a response, but the OEM declined to comment on the story.
Shares in the OEM rose 46% to INR 2.7/share — their highest value since 13 November 2019 - between 1 January 2020 and 3 January.
The manufacturer’s stock price had been falling since its auditors reported Suzlon’s ability to continue as a going concern was in “significant doubt” when it released its Q2 financials on 15 November.
Deloitte, Haskins and Sells said Suzlon had defaulted on payments to some creditors, some lenders had filed for insolvency proceedings against the manufacturer, and potential investment offers had been withdrawn.
However, the accountants said Suzlon’s management were “reasonably confident” about its restructuring plan succeeding.