UPDATE - India's Suzlon says still working on debt reduction

Bombay Stock Exchange. Author: Niyantha Shekar. License: Creative Commons, Attribution 2.0 Generic.

June 11 (Renewables Now) - While refusing to comment on a specific media report claiming that the company faces a default on bonds, Suzlon Energy Ltd (BOM:532667) reiterated today it continues to work on reducing its debt.

The Indian wind turbine maker said in a bourse filing that it has been exploring a variety of funding options such as raising fresh equity and selling subsidiaries.

The statement was in response to a report by The Times of India, which said that the company cannot, at this point, repay certain foreign currency convertible bonds (FCCBs) and faces a INR-12.05-billion (USD 174m/EUR 153m) default in July. According to the news article, Suzlon’s main plan to avoid this from happening was an equity investment from Danish peer Vestas Wind Systems A/S (CPH:VWS). However, a day earlier, news channel CNBC-TV18 said that Vestas’ offer had expired on June 3 without resulting in a deal because of a valuation difference.

In its response, Suzlon noted that it has been holding discussions both with advisors and the FCCB holders.

(INR 10 = USD 0.144/EUR 0.127)

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