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Suzlon Energy seeks fresh loans to avoid default in payment to bondholders

13 Apr 2012 Evaluate

Loss-making Suzlon Energy is seeking fresh loans from key banks in order to repay $569 million to bondholders by October, amidst signs of wariness among some lenders. The company believed to be in talks with some banks, such as SBI, Bank of India, Bank of Baroda, Central Bank, Canara Bank and IDBI, for a term loan of $700 million in FY13. Many of these banks were part of a consortium which refinanced Suzlon's $2.4-billion debt in 2010.

Persuading bondholders to roll over their debt still remains an option with the company but difficult to implement considering the paucity of time and certain opposition from many bondholders. The company has also sought investment banking firm Macquarie's help to explore this possibility.

Suzlon energy is leader in wind energy in the India, which is world’s fifth largest wind energy market. It is Asia’s strongest growing fully integrated wind power company and ranks amongst the top ten in the world. Suzlon’s emphasis on higher efficiency, reduced stresses, power quality, high performance and reliability, low operation costs, and increased safety delivering high performance turbines ensuring increased returns on investment.

Suzlon Energy Share Price

53.30 -1.68 (-3.06%)
11-May-2026 16:59 View Price Chart
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