Suzlon requested the extension in May. At the time, Suzlon chief financial officer Kirti Vagadia said: "In order to ensure there is adequate time for the necessary requisite approvals and administrative documentation, we have asked our bondholders for an extension."
The bondholders met earlier this week and agreed to extend the deadline until 27 July. The Reserve Bank of India has also approved the extension. However, the company is also due to repay a further $270 million in October.
Suzlon has enormous debt pressures. The HSBC analysis of Suzlon cash flow implies that Suzlon will have a shortfall of around INR 7.5 billion (€109 million) for the first tranche of a foreign currency convertible bond (FCCB) payment.
It will also have a shortfall totalling around INR 30 billion (€436.7 million) for financial year 2013 in meeting all its repayment obligations for financial year 2013 of about INR 34.36 billion (€500 million).
In April, Suzlon admitted it was examining the possibility of raising $300-500 million in overseas bonds to help repay its debts. Recent speculation has suggested Suzlon may try to do this through the sale of subsidiary Repower.
At the time, Vagadia said: "[Suzlon is] at an advanced stage" of raising funds to refinance the foreign currency bonds, he said. There has been speculation Repower will be forced to sell subsidiary Repower to repay the loan.