Suzlon Energy Plans Debt Re-Arrangement Post Stake Sale Failure

Wind turbine maker Suzlon Energy and its bankers to work on a debt restructuring programme to avoid the bankruptcy court for resolution after talks for stake sale with potential buyers collapsed. The domestic wind energy market faces problems that have made foreign investors wary of investing, forcing the company to drop its stake sale plan to resolve debt issues, Chairman Tulsi Tanti said.

Tanti further adds, “We were talking to two global investors to invest in Suzlon Energy. Unfortunately, because of the challenging business environment, they have decided not to go ahead with the investments.”

Banks are working with the company on the debt restructuring plan as failure of the industry major may have a domino effect on the wind energy sector, according to him.

Tanti Said, “Bankers realize that India cannot afford to lose a company which is the largest in its wind energy space. We are going to restructure the debt. The process is on right now. By the end of this month, we will finalize it.” He denied that the company is headed to the National Company Law Tribunal.

“Unfortunately, state utilities are not paying on time — almost Rs

16,000-18,000 crore is outstanding. The new chief minister of Andhra Pradesh has decided not to honor the old power purchase pacts, and is offering low prices that are not sustainable. That has shaken the confidence of financial investors to invest in the country,” according to Tanti. He further states the issues relating to availability of site and infrastructure.