Suzlon Convertibles Slump as Rescue Threatened: India Credit
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The convertible bonds of Suzlon Energy Ltd., the Indian wind-turbine maker that defaulted last year, are falling from a five-month high as a cash squeeze threatens its efforts to reorganize debt.
The company’s 5 percent equity-linked dollar securities due April 2016 slid 8.3 percent from a Feb. 6 peak to 50 cents on the dollar, prices from Jefferies Group Inc. show. Offshore Asian fixed-income notes that can be exchanged for shares lost 0.3 percent in the past month, according to a Nomura Holdings Inc. index. Suzlon’s bonds rallied 17 percent in January as its Indian lenders approved a two-year moratorium on payments on local borrowings.