Oct. 29 (Bloomberg) -- Suzlon Energy Ltd., India’s largest wind turbine maker, submitted a proposal for restructuring about $2.8 billion of debt, offering to repay the money over a decade after defaulting on a bond payment this month.
Suzlon, based in the western Indian city of Pune, put forward a restructuring proposal that will involve a moratorium on term-debt and interest payments for two years, the company said in an e-mailed statement. It suspended guidance for the current fiscal year due to liquidity constraints, volatile market conditions and problems financing its debt.
“This is an important step toward stabilizing our business by enhancing liquidity and injecting additional working capital,” Chief Financial Officer Kirti Vagadia said in the statement. “We believe this will help us to safeguard the interests of our key stakeholders.”
Suzlon, which has posted losses for three years, is under pressure to raise cash. Earlier this month, the company defaulted on $209 million of debt, the biggest on convertible bonds by an Indian company. A lack of working capital constrained its ability to complete orders in the quarter that ended June 30, Vagadia said in August after the company reported its second-biggest quarterly loss since at least 2007.
Suzlon shares have declined 59 percent in the past year. It has accumulated $2.8 billion in debt, including $965 million in revolving facilities, from acquisitions made before a global supply glut depressed turbine prices by 23 percent from their peak in 2009, data compiled by Bloomberg show.
To contact the reporter on this story: Andrew MacAskill in New Delhi at email@example.com
To contact the editor responsible for this story: Peter Hirschberg at firstname.lastname@example.org