Suzlon surges 9% after co admits to debt restructure process

Shares of Wind turbine maker Suzlon Energy surged 9 percent after the company has admitted to debt restructuring process.

The company defaulted on a $200 million convertible bond redemption last month , has been admitted to India’s corporate debt restructuring process, sources with direct knowledge of the situation said on Tuesday.

[caption id=“attachment_536815” align=“alignleft” width=“380”] Suzlon’s secured domestic debt totalling Rs 11,000 crore . Reuters[/caption]

Suzlon’s secured domestic debt totalling Rs 11,000 crore and due in five and six years will be restructured, with a two-year moratorium on interest and principal repayment, after which it will be repaid over eight years at a lower rate, one of the sources said.

The restructuring does not apply to its overseas bonds. Suzlon declined to comment.

Reuters