Brookfield's plan to acquire cash-strapped Suzlon hits a roadblock

The source said Brookfield's offer to infuse fresh equity into the company would depend on the haircut to be taken by the banks

Canadian financial powerhouse Brookfield’s plan to acquire Suzlon has hit a roadblock, with the Canadian firm asking Indian banks to take a ‘significant haircut’ on its Rs 10,300-crore debt. The haircut by banks could go as high as 70 per cent — taking into account similar deals with loan defaulters, said the source.

Suzlon has become a non-performing account for the Indian banks from the June quarter after it defaulted on its loan repayments. A banking source said they had not received any response from Brookfield which sought 45 days to conduct due diligence on the company on June 22. The