Suzlon Energy Ltd, the world's fifth-largest maker of wind turbines, was poised to default on redemption of about $221 million in overseas convertible bonds due on Thursday after bondholders rejected a four-month extension.
"I regret to announce today that the bondholders' meetings did not achieve the consensus we were hoping for and the four-month extension sought by us has not been granted," Kirti Vagadia, chief financial officer of the Suzlon Group, said in a statement on Thursday.
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-earlier period.
At the group level, Suzlon had net debt of Rs 13,017 crore at the end of June, when its cash totalled Rs 1,372 crore.
In July, it redeemed $360 million of overseas convertible bonds after bondholders agreed to a 45-day deadline extension, allowing the company to raise bank loans for the repayment.
Last month, Suzlon said it would seek approval from bondholders on October 10 to extend the maturity of two tranches of convertible bonds due on October 11 by four months, to February 11.
"We expect that an acceptable solution for all stakeholders will be arrived at the earliest possible," Vagadia said.
