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Suzlon down 5% as bondholders reject extension to repay debt

Last Updated: Thursday, October 11, 2012 - 11:16

Mumbai: Shares of Suzlon Energy on Thursday fell by over 5 percent after the company's bondholders rejected its proposal seeking four-month extension to repay debt of nearly USD 221 million.

Following the move, shares of the wind turbine maker plunged 5.13 percent to Rs 15.70 on the BSE.

At NSE, the stock slipped 5.13 percent to Rs 15.70.

The Foreign Currency Convertible Bonds (FCCBs) worth USD 220.8 million (about Rs 1,172 crore) are maturing today.

"I regret to announce that the bondholders' meetings did not achieve the consensus we were hoping for and the four- month extension sought by us has not been granted," Suzlon Group CFO Kirti Vagadia said in a statement.

Suzlon had issued USD 200 million Zero Coupon Convertible Bonds and USD 20.8 million 7.5 percent Convertible Bond. The company on September 18 had sought extension for redeeming these bonds.

It had redeemed FCCBs of USD 360.2 million in July.

In the broader market meanwhile, the BSE 30-stock index, Sensex, was trading at 18,604.97, down 26.10 points at 1030 hrs.


First Published: Thursday, October 11, 2012 - 11:16
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