Mumbai (Maharashtra) [India], July 17 (ANI): Renewable energy solutions provider Suzlon has failed to pay the principal amount of 172 million dollars for outstanding bonds which was due on Tuesday.
The outstanding payment was part of a total bond issuance of 546.91 million dollars.
"The company is working on a holistic solution for its debt and continues to be in discussion with various stakeholders in relation to its outstanding debt, including the bonds," Suzlon informed stock exchanges in regulatory filings.
Reports say Suzlon has been in talks with investors like Brookfield for a stake sale. In 2015, pharma billionaire Dilip Shanghvi invested Rs 1,800 crore in Suzlon for a 23 per cent stake and hoped to turn around the company.
When Suzlon defaulted on a repayment of 221 million dollars in October 2012, it was India's biggest bond default till then. In 2014, the company restructured 485 million dollars worth of bonds which were initially due for repayment between 2012 and 2016.
These were valued at 547 million at the time. The 172 million dollars foreign currency convertible bonds (FCCBs) default on Tuesday was for the last tranche of the 547 million dollars. Of the total FCCBs of 547 million dollars, the company had converted 375 million dollars into equity by 2018.
For 2018-2019, Suzlon company reported a consolidated loss of Rs 1,527 crore and debt of Rs 9,624 crore. Care Ratings assigned a default measure for the company in April this year.