Suzlon Energy, the world's fifth-largest wind turbine maker, plans to extend the maturity of convertible bonds due October 11 by four months to give it time to raise funds to repay bondholders.
The company, which had issued $200 million of zero-coupon convertible bonds and another $20.8 million of bonds with a 7.5 percent coupon, will meet bondholders on October 10 to seek approval to extend the maturity to Feb 11, 2013.
Suzlon is working to arrange funds from various sources including selling "non-critical" assets, raising fresh debt and selling shares to redeem the bonds, it said on Tuesday.
Suzlon raised $200 million through dollar convertible bonds in 2007, and the amount outstanding on this tranche is $121.4 million with a conversion price of 97.26 rupees per share, according to Thomson Reuters data.
The second tranche of convertible bonds worth $20.8 million and issued in 2009 has a conversion price of 76.68 rupees.
Shares in Suzlon, which has a market value of $546 million, ended at 17.15 rupees on Tuesday.
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Suzlon said the possible extension would be subject to regulatory approvals.
In July, the firm redeemed its $360 million worth of foreign currency convertible bonds.
Suzlon has been under pressure for the last few years from a slowdown in global turbine sales and its debt pile. It posted a net loss in the April-June quarter compared with a profit in the year ago period.