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Hearing on winding up petition against Indowind

According to reports, the National Stock Exchange-listed Indowind Energy is facing some headwinds as a bondholder has filed a winding-up petition against the company with the Madras High Court. The hearing on the case has just got underway.

Indowind Energy, which owns and operates wind farms, had raised $30 million through an issue of foreign currency convertible bonds in December 2007 that paid step-up interest rate of 2.5 per cent semi-annually, increasing to 7.32 per cent by June last year (based on share price remaining lower than the floor price of Rs 167.11).

However, the company defaulted on interest payments starting December 2009 and has already missed five subsequent payments. The Bank of New York Mellon has filed a winding-up petition against Indowind. In November, the petitioner obtained an order restraining Indowind from selling its assets.

The company maintains that it has had the dues restructured, but the court refused to accept it. Noting that one bondholder, QVT Fund LP of Singapore, which holds 45 per cent of the bonds issued, has rejected the offer of restructure, the order said that Indowind had been “taking a prevaricating stand about the restructure of the bonds.” Sources said that QVT is owed about Rs 200 crore.

There is no mention of the November 2011 court order among the corporate announcements of Indowind on the exchange Web site.

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