Suzlon Falls After Writing Down Illinois Wind Project
Suzlon Energy Ltd. (SUEL), the Indian wind-turbine maker seeking to extend repayment of defaulted bonds, declined the most in seven months in Mumbai after writing down the value of a U.S. wind farm.
The shares fell as much as 9.6 percent, the most since July 31. They traded 5.9 percent lower at 10.30 rupees as of 10:27 a.m. The benchmark S&P BSE Sensitive Index rose 0.2 percent.
Suzlon booked a 2.5 billion-rupee ($40 million) charge on the Big Sky farm in Illinois after reassessing for the second time the amount it expected to recover from a 240-megawatt, turbine-supply deal, Kirti Vagadia, group head of finance, said in a phone interview Feb. 14 after the close of markets.
Suzlon, the fifth-largest turbine maker, needs to raise cash to repay creditors after committing India’s biggest convertible-bond default in 2012 and restructuring 95 billion rupees of debt last year. It has been trying to recoup $208 million from Big Sky for machines sold in 2009 and wrote down the value by 4 billion rupees last year.
Vagadia declined to comment on when Suzlon expects payment, saying it depends on the outcome of a U.S. court case. The Pune-based manufacturer sued Big Sky for payment in September 2012 in New York.
Suzlon’s net loss narrowed to 10.9 billion rupees in the fiscal third quarter from 11.5 billion rupees a year earlier, it said on Feb. 14.
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