The company had said in July that it had completed the restructuring and term debt had reduced substantially, with an interest rate of 9 per cent repayable over 10 years.
The balance debt of secured consortium lenders was replaced by 0.01 per cent optionally convertible debenture (OCD) of the company, and 0.0001 per cent compulsorily convertible preference shares (CCPS) of its subsidiary, redeemable or convertible in 20 years. This also raised hopes for the company to turn a profit in the current financial year. Tanti, however, said that the situation makes profit prediction tricky. “It’s difficult to predict entirely on how the environment will emerge. We are looking at it positively, but are not very clear as to how things will move,” he said.
For FY20, Suzlon
reported a net loss of Rs 2,692 crore.
At present, said Tanti, the company is operating at 50-60 per cent utilisation, with further improvement expected January onwards.
He added: “We expect the momentum to improve January onwards. However, 100 per cent is only possible after a vaccine is in place and the psychological pressure is released.”
Part of its debt restructuring announcement, the company also said it plans to raise further funds through sale of assets. The proceeds expected from such sale is pegged at about Rs 950 crore. Tanti expects some of these assets to be sold in the next 18 months.
“The current environment is not very conducive for sale, but there is a good interest from buyers, but to get better price maybe we will target sale in the next financial year. This includes some of the non-core assets that are not required for the company’s business plans, like land, additional manufacturing capacity etc,” he said.