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India's Suzlon defaults on USD 172m of bonds

Wind farm in India. Author: Suzlon Group. License: All Rights Reserved.

July 16 (Renewables Now) - Indian wind turbine maker Suzlon Energy Ltd (BOM:532667) has defaulted on USD 172 million (EUR 153.3m) worth of bonds, it announced on Tuesday.

The debt-laden company said in a bourse statement that it has not paid the above-mentioned principal amount of step-up convertible bonds with a total value of USD 546.9 million. The USD-172-million payment was due today, July 16.

Suzlon noted it is working on a “holistic solution” for its debt and added that it continues to hold talks with various stakeholders regarding its outstanding debt.

The Economic Times (ET) reported earlier in the day, citing three sources, that the company had informed its bondholders they will need to wait to get their payments until lenders accept a proposed one-time settlement plan. According to the report, this plan is subject to Suzlon agreeing an equity investment from Canada's Brookfield Asset Management Inc (TSE:BAM.A).

Suzlon defaulted on a foreign currency convertible bonds (FCCBs) repayment in 2012. The financial instruments that are due today are the same ones it used as a replacement, the ET said.

(USD 1.0 = EUR 0.891)

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