Suzlon gets more time to repay foreign bonds

Suzlon Energy on Monday said bondholders have agreed to give the company 45 days more to repay foreign currency bonds maturing in June.

Suzlon, the world's fifth-largest wind manufacturer by cumulative installed capacity, now has until July 27 to repay USD 360 million of foreign currency convertible bonds. It has to repay another USD 207 million bonds in October.
Bondholders met on Monday and agreed to an extension that will give Suzlon more time to raise fresh debt for the repayment. The company has also received Reserve Bank of India's permission for the extension.
Suzlon had earlier said it was in advanced stage to raise as much as USD 300 million in loans to repay bondholders.
The company is in talks with SBI, IDBI, PNB, Central Bank and YES Bank for the refinance loan. It is looking to raise loans at LIBOR + 500 basis points.
Debt overhang and concerns over the company's ability to repay liability amid muted business has resulted in shares of Suzlon Energy falling 66% in the past one year to 18 as on Friday. BSE benchmark Sensex declined 9% in the same period. (With inputs from Reuters)