One of India’s largest alternative energy companies, Suzlon, finally announced the completion of its restructuring process. This was following the unanimous approval given by its secured lenders for its corporate restructuring plan. The company had been under restructuring after defaulting on some major global loans in the last one year.

Under the restructuring plan, the term debt of the company will reduce substantially with interest payable at 9% over the next 10 years. The balance debt is converted into optionally convertible debentures bearing coupon of 0.01%. Some part of it will also be converted into compulsorily convertible debentures with 0.0001% interest and redeemable in 20 years.

It may be recollected that Suzlon had made some huge bets on wind energy that had gone awfully wrong during the slowdown. In many cases, it had paid top dollars for acquisition but these were later made redundant when China started cutting costs. Dilip Shanghavi of Sun Pharma owns a significant stake in Suzlon in his personal capacity.