Suzlon loses Vestas' backing and withdraws offer to lenders - report

Denmark’s Vestas Wind Systems A/S (CPH:VWS) has backed away from the debt-resolution plan for Suzlon Energy Ltd (BOM:532667), thus forcing the troubled Indian wind turbine maker to withdraw its repayment offer to lenders, Bloomberg reports.

This was unveiled to the news agency by people familiar with the matter, one of which has said that the banks are yet to determine what the next step will be.

According to a previous Bloomberg report, Suzlon made a proposal that would have seen creditors take a haircut of 44%, offering to pay back INR 85 billion (USD 1.19bn/EUR 1.08bn).

Now, both Vestas and Brookfield Asset Management Inc (TSE:BAM.A) have reportedly abandoned their intention to help Suzlon.

In mid-July, Suzlon failed to make a USD-172-million (EUR 156m) payment on convertible bonds with a total value of USD 546.9 million. The group’s consolidated net term debt amounted to INR 77.51 billion at the end of June 2019, with working capital debt reaching INR 40 billion.

(INR 1.0 = USD 0.140/EUR 0.127)

(USD 1.0 = EUR 0.907)

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