Suzlon got its shareholders’ approval for a major financial restructuring, as chairman and founder Tulsi Tanti told Indian media the troubled wind OEM would soon be back in the market.
Suzlon’s shareholders passed 10 resolutions needed to restructure its $1.5bn of debts, the company said in a disclosure to the Mumbai Stock Exchange. Its shares were trading 5% higher by lunchtime on Wednesday.
The restructuring plan – which had already been cleared by Suzlon’s creditors – is designed to give the company a chance to regain traction in the market after its operational capability was hobbled for more than a year by its financial pressures.
The restructuring will reportedly see chairman and founder Tulsi Tanti and other investors between them inject 3.6bn rupees ($47m) of fresh equity, with lenders set to take a steep ‘haircut’ on debts that are divided into new ‘sustainable and unsustainable’ piles.
Tanti told the Hindu Business Line that Suzlon would be “back in the market” as soon as India’s coronavirus lockdown lifts, and has already started talking with customers and suppliers.
CEO JP Chalasani said in a statement released after the vote: “Stakeholders have demonstrated confidence in the company by confirming [they will] infuse equity. The company is set to begin operations post completion of formalities and end of current lockdown in the country.”
Suzlon’s latest financial results said the company had an 857MW firm order backlog and a 15GW service base, almost all of it in India.
Despite the company’s troubles Suzlon has insisted it is well-placed to benefit from India’s stretching wind power targets once its restructuring is complete.
Suzlon has already undergone one major financial restricting in 2012, and for a while had ambitions to be among the world’s leading wind power players before refocusing its ambitions on its domestic market.
Note: Update adds Suzlon statement