Wind-power producer Suzlon Energy on Tuesday said it has defaulted on principal payments due on foreign currency convertible bonds (FCCBs) worth $172 million. The company owes banks Rs 9,624 crore as on March 31, 2019.
In a notification to the stock exchanges, Suzlon Energy said, This is to inform you that the company has not made the payment of the principal amount of the outstanding bonds, being $172,000,000, which was due on July 16, 2019, in accordance with the terms and conditions of the bonds.
The company is working on holistic solution for its debt and continues to be in discussions with various stakeholders in relation to its outstanding debt (including bonds).
In April, CARE Ratings had downgraded Suzlon Energy s long- and short-term bank facilities worth a total Rs 16,185.46 crore to D from BB , with a negative outlook on the borrowings. The ratings assigned to the bank facilities of Suzlon Energy (SEL) takes into account the ongoing delays/defaults in debt servicing on the loans rated by CARE resulting from stretched liquidity position, the rating agency said in its rating rationale.
It added: This has been on account of impaired volumes resulting from wind industry s transitionary phase and delay in monetisation of assets.
The company had defaulted in term loan obligations and there were irregularities in fund-based and non-fund based limits, according to CARE.