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Suzlon defaults on bond payment, sources say it’s in talks to sell stake

MUMBAI: India's debt-laden Suzlon Energy said it defaul..

MUMBAI: India's debt-laden Suzlon Energy said it defaulted on a $172 million bond payment on Tuesday, as sources aware of the matter said the wind power equipment maker was in talks with several global private equity funds to sell a majority stake.

The company's creditors, led by India's biggest lenders State Bank of India, last week signed a so-called inter-creditor agreement (ICA) under which they had agreed not to take the company to a bankruptcy court.

Instead, they are studying a one-time settlement plan offered by the company, said the sources, who asked not to be named as they were not authorised to discuss the matter publicly.

It was not immediately known whether the ICA included the company's bondholders or not.

The western India-based company said it had not paid $172 million on an outstanding foreign currency convertible bond (FCCB) that was due on Tuesday.

"The company is working on a holistic solution for its debt and continues to be in discussions with various stakeholders in relation to its outstanding debt (including the bonds)," it said in a statement.

The company's shares fell more than 4% to close at 4.60 rupees on Tuesday, compared with a 0.6% rise in the broader Nifty index.

SBI's creditors "have sent feelers to all major private equity firms and are talking to some similar sized private equity firms such as Brookfield", said one of the sources, a Mumbai-based banker.

He said these included a U.S.-based private equity major, but refused to identify the firm.

SBI and Suzlon did not immediately respond to emails seeking comment.

Bloomberg reported last Thursday that Canadian company Read More – Source

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