Suzlon Energy denies reports of filing for bankruptcy, stock dives by 9 pc
Troubled renewable energy solutions provider Suzlon on Monday denied reports suggesting that it has filed for bankruptcy and will soon be approaching the National Company Law Tribunal (NCLT).
“We wish to reiterate that Suzlon’s debt resolution and revival plans have never been dependent on any single option,” it informed stock exchanges in regulatory filings.
“The lenders and the company continue to work hard for a sustainable resolution plan to preserve the value of the company since the relevant stakeholders are mindful about Suzlon’s contribution to Indian renewable energy sector, its strong market position together with its order book as well as industry potential.”
The company said the lenders have already signed an inter-creditor agreement. In terms of the June 7 circular of Reserve Bank of India, the lenders have time till January 2020 to work on a sustainable resolution plan before taking any extreme steps.
“Considering the interest of all stakeholders, the lenders and the company are working on a constructive solution,” it said.
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.
In July, the company failed to pay the principal amount of 172 million dollars for outstanding bonds which was due. The outstanding payment was part of a total bond issuance of 546.91 million dollars.
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.
At 1 pm, its stock was trading 9.09 per cent down at Rs 2.30 on BSE. (ANI)