The recast package envisaged by banks and financial institutions will entail Suzlon Energy being given two years moratorium on interest payment and principal repayment on the 10-year rupee term loan amounting to Rs 3,716 crore.
The interest rate charged will be 11 per cent and the repayment will happen in 32 quarterly instalments.
The fund-based working capital facility has been projected at Rs 2,000 crore and will carry a concessional interest of 11 per cent.
The non-fund based working capital facility has been projected at Rs 3,614 crore. Margin will be taken as per existing norms and there will be a 50 per cent concession on the card rate on all the charges.
Suzlon will be granted two five-year funded interest term loan facilities (for paying the interest on the loans it has taken) aggregating Rs 1,635 crore and the interest charged will be 11 per cent.
These facilities will come with a two-year moratorium. Post the moratorium, the company will have to make repayments in 12 quarterly instalments.
A Rs 3,076-crore working capital term loan (for meeting working capital requirements including shortfall in margin money) facility of eight years duration at 11 per cent interest will be provided to the company.
This loan will have a moratorium of two years and repayment will be 24 quarterly instalments.
The restructuring package assumes that FCCBs aggregating $475 million will be rolled over for a further period of five years and the indicative coupon on the bonds will be six per cent.
These bonds will be converted into equity at the end of five years.
Besides bringing in Rs 250 crore by way of equity, the promoter group (led by Tulsi Tanti) will ensure that receivables from Edison amounting to $206 million (Rs 1,145 crore) and accrued interest thereon materialise by the third quarter of the financial year 2014-15.
Suzlon will cut manpower and operating costs by about Rs 300 crore by FY2014. It will raise equity up to $500 million by way of stake sale/ divestment by the end of FY2015.
The company will also sell assets — Suzlon Energy (Tianjin) Ltd, SE Forge Ltd, SE Electricals Ltd and offices – to mop up about Rs 600 crore.