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Business News/ Companies / News/  Suzlon defaults on bond payments worth $172 million
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Suzlon defaults on bond payments worth $172 million

The outstanding payment was part of a total bond issuance of $546.91 million, the company said in a filing to stock exchanges
  • On 11 July, Bloomberg reported that Canadian asset manager Brookfield Asset Management Inc. is planning an offer for a majority stake in Suzlon
  • The outstanding payment was part of a total bond issuance of $546.91 million. (Photo: Bloomberg)Premium
    The outstanding payment was part of a total bond issuance of $546.91 million. (Photo: Bloomberg)

    MUMBAI : Troubled wind turbine maker Suzlon Energy Ltd on Tuesday said it has failed to make a payment of principal amount of $172 million for outstanding bonds, due in July.

    The outstanding payment was part of a total bond issuance of $546.91 million, the company said in a filing to stock exchanges.

    “The company is working on a holistic solution for its debt and continues to be in discussions with various stakeholders in relation to its outstanding debt (including the bonds)," Suzlon said in the filing.

    On 11 July, Bloomberg reported that Canadian asset manager Brookfield Asset Management Inc. is planning an offer for a majority stake in Suzlon. The Toronto-based investment firm is working with a financial adviser for due diligence on Suzlon, it reported, adding that Brookfield proposes to start with buying new shares issued by the company, followed by purchasing stocks from the existing holders under an open offer, the people said.

    As part of the proposed deal, the Canadian company is in discussion with Suzlon’s creditors to restructure the outstanding bank loans of more than 11,000 crore ($1.6 billion), under a one-time settlement plan, Bloomberg reported.

    In 2015, pharma billionaire Dilip Shanghvi invested 1,800 crore in Suzlon for a 23% stake, hoping to turn around the company.

    On Tuesday, shares of Suzlon closed at 4.67 apiece, down 3.11% on BSE, while the benchmark Sensex closed at 39,131.04 points, up 0.6%.

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    ABOUT THE AUTHOR
    Swaraj Singh Dhanjal
    " Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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    Published: 16 Jul 2019, 06:23 PM IST
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