Discussions are on between bondholders and Suzlon Energy for resolution
Shares of Suzlon Energy declined over 5 per cent in early trade on Tuesday after reports that the company is staring at a default on redemption of its foreign currency convertible bonds (FCCBs) worth $172 million, or Rs 1,200 crore, due on Tuesday. It has told bondholders that they will have to wait until banks accept its proposed one-time settlement plan.
The scrip was trading 5.60 per cent down at Rs 4.55 at around 9.33 am (IST), while the BSE Sensex was almost flat at 38,893 at around the same time.
The one-time settlement offered to banks by Suzlon depends on a deal being negotiated with Canadian investor Brookfield, which is interested in acquiring equity in the Tulsi Tanti led company that has net term debt, including FCCBs, of Rs 7,761 crore and working capital debt of Rs 3,380 crore.
“Discussions are on between bondholders and Suzlon Energy for resolution. This will get resolved along with the global one-time settlement. There won’t be any offer before that,” a person directly involved with the deal told ET.
For bondholders, the option to convert FCCBs into equity is not attractive.
Source: energy.economictimes.indiatimes
