The board has decided to try and raise the money through external commercial borrowings to meet a “gap in funding,” the company said today in a filing.
It needs $20 million “for clearing” long-term loans and payments on its foreign-currency convertible bond, it said. The remainder would go to building a 28-megawatt wind farm.
Chennai-based Indowind develops wind farms for sale and also builds and operates its own installations. Its share price has plunged 98 percent from its peak in 2007. It cited payment delays by state-run electricity buyers and the lack of adequate power distribution infrastructure in its latest annual report.
It has $30 million of zero-coupon bonds that can be converted into company stock maturing in December, according to data compiled by Bloomberg. Its shares closed today at 5.1 rupees, 90 percent below the bond’s floor conversion price.
Shareholders approved changing the bond’s terms in August 2009 to lower the coupon to zero from 2.5 percent and the floor conversion price to 48.9 rupees from 167.11 rupees, according to data compiled by Bloomberg and company filings.
The Bank of New York Mellon Corp. (BK) filed a petition on behalf of bondholders for payment of $40 million, Indowind said in a March 9 filing to the National Stock Exchange.
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