Wind power producer Suzlon Energy on Wednesday said its secured lenders have signed an inter-creditor agreement (ICA) under the RBI’s June 7, 2019, circular for resolution of stressed assets.
The circular makes it mandatory for lenders, including financial institutions and small finance banks, to enter into an ICA within 30 days from a default, also referred to as the ‘review period’, during which lenders review an account and decide on a resolution strategy. On Tuesday, Suzlon defaulted on principal payments due on foreign currency convertible bonds worth $172 million. The company owes banks Rs 9,624 crore as on March 31, 2019.
In a notification to stock exchanges, Suzlon Energy said, “The company is working on holistic solution for its debt and continues to be in discussions with various stakeholders in relation to its outstanding debt, including the bonds. Actual impact can only be ascertained once any amicable solution is worked out with lenders, including bondholders.”— FE