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Suzlon abandons stake sale, seeks debt restructuring - report

Suzlon wind turbine. Author: Suzlon Group. License: All Rights Reserved.

December 5 (Renewables Now) - Indian wind turbine maker Suzlon Energy Ltd (BOM:532667) is working with lenders to restructure debt after talks with potential buyers of a stake in the company proved unsuccessful, chairman Tulsi Tanti told the Economic Times.

According to Tanti, the company had been in negotiations with two global investors who have decided not to invest in Suzlon because of the challenges faced by the Indian wind energy market. Tanti did not disclose the names of the two investors, but Suzlon was previously reported to be in talks with Denmark’s Vestas Wind Systems A/S (CPH:VWS) and Brookfield Asset Management Inc (TSE:BAM.A).

Speaking of the challenging conditions in India, Tanti noted the unsustainably low prices offered by the new chief minister of Andhra Pradesh instead of those previously included in power purchase agreements (PPAs) and the delays in projects faced by the sector because of a lack of available sites and infrastructure.

Under a plan submitted to Suzlon's lenders, the company's debt of INR 70 billion (USD 1.04bn/EUR 948m) will be split into sustainable and unsustainable debt. The company is also talking to holders of its foreign currency convertible bonds for settlement of borrowing, including a waiver of considerable amount, according to ET.

An inter-creditor agreement was signed by the company's secured creditors in July and they have until January 6 to find a solution to Suzlon's debt crisis.

The debt restructuring process will be finalised by the end of December, Tanti said, as quoted by ET. Talk that Suzlon is headed to the National Company Law Tribunal is just "speculation", he told the newspaper.

(INR 100.0 = USD 1.49/EUR 1.35)

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Before joining Renewables Now, Alex was a UK-focused business news reporter. Now she is covering global news from the renewable energy industry with a special interest in M&A.

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