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For raising money Suzlon does not need to sell REpower

Raising 5,000 Cr is not the condition for CDR. As part of process the company has to raise 5,000 Cr in 3 years and 3 months time , i.e by March 2016. Suzlon don’t have to raise this money now.

 
PRLog - Jan. 11, 2013 - PUNE, India -- Raising 5,000 Cr is not the condition for CDR. As part of process the company has to raise 5,000 Cr in 3 years and 3 months time , i.e by March 2016. Suzlon don’t have to raise this money now.

The money which will be raised this will happen by selling its non critical assets and not REpower  The bankers and lenders have never asked Suzlon to raise fund by selling REpower, instead by selling its non critical assets. Suzlon won't sell a stake in REpower that it took control of after a bitter battle with Portugal's Martifer before the 2008 credit crisis and by paying over the odds. For raising money Suzlon does not need to sell Repower

Other companies whose CDR happened recently or few years back never had assets as large as Suzlon. The company has got huge assets.

Founded by Tulsi Tanti, Suzlon says it won't sell a stake in REpower that it took control of after a bitter battle with Portugal's Martifer before the 2008 credit crisis and by paying over the odds. "The company is in negotiations with its lenders on the CDR issue," the Suzlon spokesman said in an email response. "We have also been on record in recent weeks stating, without ambiguity, that REpower is 'the jewel in our crown' and it is by definition a critical asset and, therefore, not for sale. Our position has not changed."

The proposed recast package for Suzlon stipulates that the borrower invest Rs 250 crore immediately, and Rs500 crore more over 18 months. Lenders have agreed to lower the interest rate to 11%, from 14-15%. If the restructuring happens, banks would reinstate the working capital limit of Rs 1,500 crore, which was blocked earlier.

In turn, Suzlon would be required to consolidate by selling some of its overseas subsidiaries and open an escrow account with the lead bank, State Bank of India. Suzlon has appointed SBI Capital Market, the bank's investment banking unit, to advise it on debt recast. Officials, who declined to be named, said the lenders have in principal approved the debt recast package but the management of each bank will have to give written consent.

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Contact Email:
***@suzlon.com Email Verified
Source:SUZLON, REpower, Tulsi Tanti
Phone:918888817396
Zip:401120
City/Town:Pune - Maharashtra - India
Industry:Wind Turbine
Tags:Suzlon. REpower, TULSI TANTI
Shortcut:prlog.org/12057416
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