Faced with a 60% haircut on their exposure, lenders to Suzlon Energy are unwilling to loan the company more working capital, a decision that
is delaying the proposed restructuring plan, persons familiar with the development told FE. Also, since the 210-day period, within which
banks needed to come up with the resolution plan, were over last month, banks will need to make extra provisions for the exposure in
the March quarter. Of the 18 members in the consortium, some lenders have already made full provisions for the account.

On January 7, Suzlon disclosed to the stock exchanges that the total amount due to financial creditors was Rs 12,785 crore. The promoters have
suggested a haircut to the tune of Rs 7,000 crore. The company requires an estimated Rs 1,800 crore of working capital to remain
a going concern.

As per the Reserve Bank of India\u2019s(RBI) June 7 circular, the banks must make an additional provisioning of 20%,
if they fail to resolve the account, in 210 days, post the signing of the inter-creditor agreement (ICA) on July 7, 2019. State Bank
of India is the lead creditor to Suzlon with an exposure of around Rs 4,000 crore.

According to another lender, the promoters have suggested that banks effectively defer the repayment of the unsustainable portion of the debt loans till 2030. The sustainable
portion of debt will be repaid between now and 2020, the promoters have suggested. This issue needs to be addressed.
We will continue to have an exposure to the sustainable portion of debt to Suzlon for 10 years.

Over the period that the plan has been worked on, the sustainable portion of the debt has been falling. The ratio of sustainable to
unsustainable debt currently stands at 36:64, which is way below than the initial ratio of 54:46,the persons added.

During this period, Suzlon needs to remain a going concern and generate cash as envisaged in the resolution plan.
The lenders are trying to resolve the account outside National Company Law Tribunal (NCLT) as there is a fear of value depletion,
if a fresh resolution process started again, the banker added.

Suzlon Energy had defaulted on the payment of Rs 7,256 crore to lenders, the company informed exchanges on January 7, 2020.
FE learned that lenders had earlier discussed resolution with two investors, reportedly Canada-based Brookfield and
Denmark-based Vestas Wind Systems. Subsequently, they considered the proposal by the existing promoters led by Tulsi Tanti.