INSUBCONTINENT EXCLUSIVE:
Shares of Suzlon Energy declined over 5 per cent in early trade on Tuesday after reports that the company is staring at a default on
redemption of its foreign currency convertible bonds (FCCBs) worth $172 million, or Rs 1,200 crore, due on Tuesday
It has told bondholders that they will have to wait until banks accept its proposed one-time settlement plan.
The scrip was trading 5.60 per
cent down at Rs 4.55 at around 9.33 am (IST), while the BSE Sensex was almost flat at 38,893 at around the same time.
The one-time
settlement offered to banks by Suzlon depends on a deal being negotiated with Canadian investor Brookfield, which is interested in acquiring
equity in the Tulsi Tanti led company that has net term debt, including FCCBs, of Rs 7,761 crore and working capital debt of Rs 3,380
This will get resolved along with the global one-time settlement
equity is not attractive.