August 9 (Renewables Now) - Debt-laden Indian wind turbine maker Suzlon Energy Ltd (BOM:532667) has made a proposal that would see creditors take a haircut of 44%, according to a Bloomberg report that cites knowledgeable sources.
The sources have told the news agency that Suzlon had offered to pay back to lenders INR 85 billion (USD 1.2bn/EUR 1.08bn) under a bad-debt-resolution plan backed by Vestas Wind Systems A/S (CPH:VWS). At present, this is the only option available to lenders after Brookfield Asset Management Inc (TSE:BAM.A) backed away, one of the people said.
The Economic Times reported on Wednesday, quoting two sources, that Brookfield had abandoned its plan to acquire a majority stake in Suzlon after failing to reach an agreement with lenders on its valuation. According to a senior banker cited by the newspaper, Brookfield had requested a 60%-70% haircut on the debt.
Last month, Suzlon defaulted on USD 172 million (EUR 154m) worth of bonds and said it was working on a “holistic solution” for its debt.
(INR 10 = USD 0.142/EUR 0.127)
(USD 1.0 = EUR 0.894)