India

India

Suzlon's value plunges after shares sold to tackle debt

INDIA: The value of turbine manufacturer Suzlon fell by more than a third today after founding shareholders sold their shares to tackle the company's debt problems.

The sale of 109.9 million shares - 6.19% of Suzlon – by the company’s founders wiped 34% off its value, the biggest fall in the Indian turbine manufacturer’s share price in more than four years.

Suzlon’s founders sold the shares to raise INR 2.4 billion ($44 million) to repay lenders as part of its $1.8 billion debt restructuring plan, which was approved by the firm’s 19 lenders last month.

The debt plan gave Suzlon, which had been struggling with loan repayments, a two-year moratorium on principal and term-debt interest repayments, as well as a six-month moratorium on working capital interest. It also includes a 3% reduction on interest rates.

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