Suzlon Energy has sought a four months extension to redeem $220 million bonds (about Rs 1,200) following its inability to tie up the requisite funds. The redemption is due in October.
In July Pune-based wind turbine supplier redeemed bonds valuing $360 million after raising cash through sale of non critical assets, debt and internal accruals. Suzlon's business has been hurt by a slowdown in the wind energy business and reported a loss of Rs 696 crore in first quarter FY 2013.
On Tuesday the company issued a statement requesting foreign currency convertible bond holders four extra months for redemption. The company said it was in process of closing various financing measures and "drive alignment between all stakeholders on allocation of cash resources.''
A company spokesperson said: “We intend to redeem the outstanding October FCCBs at the end of the proposed four month extension, subject to requisite approvals. We are actively working on various sources of funding; including from the sale of non-critical assets, fresh debt, equity-linked and/or equity fund raising through the domestic and international capital markets, and additional secured leverage at an international subsidiaries-level by optimally re-balancing our debt across various assets.
“We have sought this extension in order to have adequate time to complete this exercise, and meet the redemption obligations in complete alignment with all our stakeholders. We believe these initiatives will enable us to optimally allocate resources between our business requirements and debt obligations in a manner that will allow us to obtain relevant approvals from our senior secured lenders. With these measures we remain fully confident of meeting our obligations and preserving value for all our stakeholders,'' the spokesperson said.