Suzlon to sell property of value Rs.1,000 crore
Mrs. Tulsi Tanti, managing director, says that the Suzlon Energy Ltd plans to raise Rs.1,000 crore by corporate debt restructuring (CDR) process that Suzlon started in January 2013.
The company is also targeting to cut off operating expenses, staff costs and headcount by 20 percent, besides selling non-critical assets. As per the investor presentation, $400-500 million of non-critical assets have been identified as a part of Project Transformation which is part of company’s strategy.
The company announced its decision to sell assets soon after Suzlon sold Big Sky wind park in Illinois on 9 April for nearly Rs.550 crore to Ever Power Wind Holding Inc.
As per the data, Suzlon’s loss decreased a little to Rs.1, 075.25 crore in the quarter ended 31 December from Rs.1, 154.53 crore in the year earlier. The Suzlon Group had a total debt of Rs14, 971.29 crore on 30 September.
The company was admitted to the CDR cell in January last year by lenders. As the part of debt restructuring package the lenders agreed to improve working capital facilities to the group by Rs.1,800 crore and announced a 10-year deferred repayment plan.
Hit by debt and loss, the Suzlon had failed to repay $209 million of debt on 11 October 2012 after bondholders refused the company’s request for a four-month extension. This was the largest default on convertible bonds by an Indian firm.
As the part of restructuring package, Suzlon has been trying hard to sell its non-core assets. In April last year, the company sold assets in Tamil Nadu for nearly$40 million.
In June 2012, the company also entered in to an agreement to sell its equity to China Power (Tianjin) New Energy Development Co. Ltd for nearly $60 million.
Source: The Live Mint
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