Suzlon bondholders reject more time to repay $221 million debt
MDT/PTI 11 October 2012

Suzlon's FCCBs worth $221 million or Rs1,172 crore are maturing today. The wind turbine maker has a net debt of Rs11,165 crore at the end of March 2012

New Delhi: Wind turbine maker Suzlon Energy on Thursday said bondholders have rejected its proposal seeking four-month extension to repay debt of nearly $221 million, reports PTI.
The foreign currency convertible bonds (FCCBs) worth $220.8 million (about Rs1,172 crore) are maturing today.
"I regret to announce today that the bondholders' meetings did not achieve the consensus we were hoping for and the four-month extension sought by us has not been granted," Suzlon Group Chief Financial Officer Kirti Vagadia said in a statement.
Shares of the company slumped 3.63% to Rs15.95 in early trade on the BSE.
Suzlon had issued $200 million Zero Coupon Convertible Bonds and $20.8 million 7.5% Convertible Bond. The company on 18th September had sought extension for redeeming these bonds.
Noting that the company expects an acceptable solution at the earliest, Vagadia said, "We continue to enjoy the support and confidence of our secured lenders for our business objectives.
"We believe our ongoing engagement with them and our bondholders continues to be both constructive and progressive, and geared towards addressing our liabilities and our overall capital structure in a holistic manner."
In recent times, Suzlon has been grappling with rising debt and stiff competition in global markets.
Vagadia said, "Suzlon Group appreciates the loyalty of its customers, the support of its suppliers and the dedication of its employees through this process.
"In addition, with an order book in excess of $7.2 billion, we believe the business can and will stabilise and the Group's senior management is committed to restoring the company to a position of strength."
The company had redeemed FCCBs of $360.2 million in July this year.
Suzlon's net debt touched Rs11,165 crore at the end of March 2012.
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