Bondholders rejected Suzlon Energy’s request for a four-month moratorium to repay $220.8 million of debt due today, India’s biggest wind-turbine maker said in an e-mailed statement.
Suzlon, based in the western Indian city of Pune, sought to postpone repayment to February 11, the second time it’s sought an extension this year, as it needed time to raise funds. The company has $200 million of zero-coupon convertible bonds and $20.8 million of 7.5 per cent convertible notes maturing today.
“We expect that an acceptable solution for all stakeholders will be arrived at the earliest possible” time, Chief Financial Officer Kirti Vagadia said in the statement.
The company’s shares, which have declined 11 per cent this year, fell as much as 5.2 per cent in Mumbai to 15.70 rupees, their lowest since September 13. They were trading down 4.2 per cent to 15.85 rupees as of 9:31 a.m.
Suzlon, which has posted losses for three years, is under pressure to raise cash. A lack of working capital constrained its ability to complete orders in the quarter that ended June 30, Vagadia said in August after the company reported its second-biggest quarterly loss since at least 2007.
The company got a 45-day extension to avert default in June when it redeemed $360 million of convertible notes. The bonds were repaid on July 27 after Suzlon borrowed $300 million from banks and sold two Indian wind farms.
A global supply glut has depressed turbine prices by 23 per cent from their peak in 2009, while the loss of government incentives in India may cause order deferments in Suzlon’s home market, according to Batlivala & Karani Securities India Pvt.
