On June 21, Brookfield had sought 45 days from the banks to conduct a due diligence on the company. On July 16, the company defaulted to its foreign currency convertible bonds worth $172 million.
According to the plan discussed with the banks, Brookfield was to infuse fresh equity into the company, which would have resulted in the promoter stake getting diluted.
The source also said Sun Pharmaceutical promoter, Dilip Shanghvi, would have an option to retain his stake in the company — provided he brings in proportional amount to buy fresh equity. In 2014, Shanghvi had invested Rs 1,400 crore to buy 23 per cent stake in Suzlon and invested an additional Rs 450 crore to develop the wind farm business. The stake is worth Rs 519 crore, taking into account Suzlon’s share price of Rs 4.25 as on Tuesday.
In FY13, Suzlon was referred to the CDR cell for restructuring of its debt — taking into account positive long-term outlook of the wind energy sector and the package was approved by CDR Empowered Group in December 2012. The approved CDR package was implemented by execution of Master Restructuring Agreement (MRA) by all CDR lenders on March 28, 2013. Since then, the company has seldom showed good financial metrics (see chart).
In FY19, the company has reported a massive loss of Rs 7,413-crore loss on revenues of Rs 2,543 crore. The company was downgraded to default category in April by Care Ratings after it missed its debt repayment deadlines.
(With inputs from Raghavendra Kamath)