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Moser Baer Slumps to 13-Year Low on Restructuring Plans

According to reports, Moser Baer India Ltd. (MBI), the nation’s largest solar manufacturer, slumped to the lowest in more than 13 years in Mumbai trading after saying it will restructure $738 million of loans and bonds.

The company expects to restructure 35 billion rupees ($649 million) of secured loans by August and is in discussions with bondholders to extend the tenure of its convertible notes or to sell new five-year bonds, Chief Financial Officer Yogesh Mathur said today in a phone interview. Moser Baer has $89 million of convertible bonds maturing on June 21, according to data compiled by Bloomberg.

Moser Baer slid 7.5 percent to 11.10 rupees, its lowest close since Dec. 18, 1998. The yield on its zero-coupon bond due June rose 2.4 percent to a record, according to data compiled by Bloomberg.

Indian makers of solar panels and cells, including Moser Baer and Tata BP Solar Ltd., are struggling to compete against lower-cost Chinese rivals amid a supply glut that has cut prices 48 percent in the past year. Germany and Italy, the two biggest markets, have scaled back subsidies for renewable energy, damping demand for the equipment.

Moser Baer said in a February filing it had approached bankers to restructure secured debt to align its liabilities with cash flows. The restructuring will allow the company to replenish its cash balance, which has fallen to less than $15 million, Mathur said.

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