According to reports, Suzlon Energy Ltd. (SUEL), India’s second-biggest wind-turbine maker, expects as early as next week an extension on $209 million of defaulted debt, said three people with direct knowledge of the matter.
Suzlon, based in the western Indian city of Pune, has been in talks with bondholders for a five-year extension for the dollar-denominated convertible debt, said the people, asking not to be identified before an announcement. The company, failed to repay investors in October 2012, the nation’s biggest convertible bond default.
Suzlon, slated to report quarterly earnings on Feb. 14, won’t comment on speculation, it said today in an e-mail. The company’s shares fell 0.4 percent to 11.45 rupees at the close in Mumbai.
Suzlon has $5.2 billion of bonds and loans outstanding, according to data compiled by Bloomberg. The company will need to redeem $121 million of zero-coupon, dollar-denominated convertibles in 2014, and another $190 million of debt exchangeable into equity in 2016, the data show.
The company may seek to raise as much as $750 million through an initial public offering of its German unit REpower Systems SE on the London Stock Exchange by August, CNBC-TV18 reported Jan. 21. Proceeds from the share sale will repay Indian lenders and German banks owed as much as 750 million euros ($1 billion) by the unit, CNBC said.