Suzlon requests more time for €225 million repayment

INDIA: Suzlon has asked for an additional 45 days to repay the €225.6 million foreign currency convertible bond it is due to repay in June.

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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."

Last month, 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.

Vagadia said: "[Suzlon is] at an advanced stage" of raising funds to refinance the foreign currency bonds, he said.

The raising of bonds is one of two other strategies Suzlon has for repaying the loan. One is through the sale of non-critical assets such as wind farms. The other is through generating cash through company performance, including from subsidiary Repower.

In April, Vagadia was confident about raising the funds on time and made no mention about the need for an extension. He said at the time: "We are working aggressively on our plans to manage our near-term repayment obligations and remain very confident of meeting them."

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