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India

India

Suzlon fails to extend $220 million deadline

INDIA: Suzlon Group has failed in its attempt to delay the repayment of $220 million to bondholders by four months.

The company has $200 million in bonds and $20.8 million in convertible notes maturing today. In a statement, Suzlon chief financial officer Kirk Vagadia said talks between Suzlon and the bondholders was "constructive and progressive, and geared towards addressing our liabilities and our overall capital structure in a holistic manner."

Athough Vagadia pointed out Suzlon's order book of $7.2 billion, there was no indication how the company would raise the funds. He also alluded to Project Transformation, which aims to lower manpower costs by 20%.

Vagadia added: "We believe that the interests of our stakeholders are best served by driving business performance, and therefore our primary focus is to capitalise on our strong business fundamentals, maintaining order momentum and delivering on Project Transformation."

However, Suzlon was adamant it would not be selling German subsidiary Repower to pay off the debt. In response to the question the company described Repower as a 'critical asset' and not up for sale.

The company has previously stated it would look to sell non-critical assets to finance repayments. As part of this it recently sold off its Chinese subsidiary Suzlon Energy Tianjin to China Power New Energy Development for $60 million.

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