United States

United States

Suzlon takes on Big Sky in lieu of loan repayments

UNITED STATES: Suzlon has completed its takeover of the Big Sky wind farm in the US from Edison Mission Energy.

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Suzlon has been forced to take on the 240MW project after the developer failed to pay back a loan made by the Indian manufacturer.

The company has been chasing the $228 million loan it made to now-bankrupt Edison Mission Energy for the purchase of turbines for the project in Illinois since 2012, but has now taken on the project in lieu of the repayment of the loan.

Suzlon said in February that it would have to write down the asset to $90 million. The wind farm does not have a long-term power purchase agreement with a utility, instead having to sell its power at spot prices on the regional market.

Edison Mission's administrators have sold most of its portfolio to NRG Energy, and there had been discussions about the American energy firm also taking on Big Sky, but this now seems off the cards.

Suzlon said in a regulatory filing that it is planning to sell the project to wind developer Everpower for an undisclosed sum.

This will be an appealing prospect for the manufacturer as it is in desperate need of cash. It defaulted on the buyback of $221 million in bonds in October 2012, making it the biggest default of its kind ever by an Indian company.

Suzlon is also attempting to refinance a EUR 750 million loan from Deutsche Bank that is due for renewal in August.

Suzlon made the loan to Edison Mission so that the developer was able to purchase the 114 S88/2.1MW turbines that have been spinning on the project since 2011.

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