According to reports, banks are staring at a Rs 300-crore loss with WinWind, a Finland-based wind power company owned by Chennai-based billionaire C Sivasankaran filing for bankruptcy. The company has filed for bankruptcy in Finland as it failed to pay Euro 300 million (Rs 2,500 crore) of debt to its lenders and other creditors.
The bankruptcy of WinWind is a series of failures of the $3 billion (in assets) Siva group as it had to close down to its wireless telephony firm S Tel following the Supreme Court order last year and in the process losing around Rs 1,800 crore apart from a slowdown in its commodity business in Africa and South-East Asian nations.
WinWind has blamed the current international financial uncertainty and the decrease in demand in wind energy sector for the closure of the business. It said the falling demand has made it difficult to develop the business, increase sales and reach profitability. IDBI Bank has an exposure of Rs 300 crore and company insiders say it will be able to get back upto 15 million euros or around Rs 125 crore by sale of WinWind’s wind power business.
When contacted an official spokesperson of the group said: “The matter is before the court and administrator pursuant to the decision taken by the WinWinD board to file voluntary bankruptcy. In view of this, we have no comments to offer and we will abide by the decision of the Administrator.”