Suzlon's board approves cashless restructuring of its Foreign Currency Convertible Bonds

Suzlon Group announced that its Board of Directors has, by circular resolution, approved a cashless restructuring proposal in respect of the Existing Bonds.

The company and an ad-hoc committee of the bondholders have concluded negotiations and have agreed on the proposed restructuring terms. The ad-hoc committee of bondholders comprises of select bondholders withsignificant holdings across each of the Existing Bonds.

The restructuring proposal, including the terms of the new restructured bonds, are subject to the approval of the RBI, the CDR Empowered Group and the requisite majority of the holders of the Existing Bondsin each series. In this regard, the company will issue separate notices, each dated on or about 6thMay 2014, to convene meetings of the holders of each series of the Existing Bonds to consider, and if thought fit, to approve, the restructuring proposal.

Further, the Company has entered into, a standstill agreement with the bondholder’s ad-hoc committee (the “Standstill Agreement”) to facilitate the proposed restructuring of the Existing Bonds. The Standstill Agreement provides for a standstill period extendinguntil 15thAugust 2014, subject to the terms of the Standstill Agreement.

Speaking on the occasion the Chairman Mr. Tanti said “TheStandstill Agreementis a testimony of the faith and confidence the bond holders have displayed in Suzlon. At Suzlon, I take pride to share that against the backdrop of a challenging business environment, the company has managed to retain its prized customers”.

Speaking on the development, Mr. Kirti Vagadia, Group Head – Corporate Finance– Suzlon Group said: “I am glad to inform that we have concluded our discussion with the ad-hoc committee of bondholders. The proposed cashless restructuring package for our Existing Bondsis an optimal solution to our last remaining piece under the comprehensive liability management programme and is value accretive for all our stakeholders. The Suzlon Group remains thankful to the secured lenders and bondholders for their patience and constructive approach in arriving at a solution.”