According to reports, wind turbine maker Suzlon Energy today said its promoters have sold shares worth Rs 63 crore as part of corporate debt restructuring mechanism and the funds would be used to reduce liabilities.
“The promoters of the company have sold 3.75 crore shares today for a total consideration of approximately Rs 63 crore, representing approximately 2.11% of the paid up capital of the company,” Suzlon said in a statement.
Following the sale, the promoter group’s holding in the company stands reduced to 50.65% of the paid up capital.
“The company plans to use these funds for business operations and debt reduction,” it said.
According to the statement, these fund would be infused into the company by suitable mode at the earliest, subject to applicable law to comply with equity infusion requirement under Corporate Debt Restructuring (CDR) mechanism.
As part of CDR process, Suzlon’s promoters are required to infuse certain funds into the company upfront.
Suzlon has a debt burden of over Rs 13,000 crore including Foreign Currency Convertible Bonds (FCCBs) obligations. Recently, bondholders had rejected its proposal seeking four-month extension to repay overseas debt worth about $221 million.
On October 29, Suzlon said it has initiated discussions with lenders for restructuring debt, including a two-year moratorium on repayment of term loans.
In the 2012 September quarter, Suzlon reported a consolidated net loss of Rs 807.74 crore.
The entity had a consolidated net profit of Rs 48 crore in the second quarter of last fiscal.
The figures are after taxes, minority interest and share of profit/loss of associates.
Suzlon has an order book of about Rs 37,290 crore (nearly $7 billion).