Troubled Suzlon offers to repay $1.2b to settle stressed debt

Photo: Pixabay

India’s troubled wind-turbine maker Suzlon Energy Ltd. offered to repay about 85 billion rupees ($1.2 billion) to lenders as part of a bad-debt-resolution plan, people with knowledge of the matter said.

Creditors led by State Bank of India will have to take a haircut of as much as 44% on Suzlon’s debt if the offer is accepted, the people said, asking not to be named as the information is not public. The settlement plan backed by Vestas Wind Systems A/C is the only bid in front of lenders after Brookfield Asset Management Inc. dropped out of the race, one of the people said.

The Pune-based manufacturer has been embattled after Prime Minister Narendra Modi’s government shifted to auctions in 2017 as the preferred method to install wind projects. That’s limited orders for domestic turbine manufacturers amid rising operational costs and stiffer competition from global players.

“It is a tough situation for Suzlon with tight competition, amid rising operational costs and funding costs,” said Mathew Antony, managing partner of Aditya Consulting. “The company needs strategic investors with long-term investment window of at least 10 years.”

A spokesman for SBI and spokeswoman for Suzlon didn’t respond to an email seeking comment. Suzlon’s long-term bank facilities were downgraded to D from BB in April by Care Ratings and the company missed payments on its dollar-denominated convertibles last month.

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.