Indian Turbine Maker Suzlon Seeks Looser Terms on Debt Deal
The firm is asking its lenders to accept new convertible debt in place of interest payments due this quarter on its loans.
(Bloomberg) -- Just months after coming to terms with its lenders on a debt recast, India’s largest wind turbine maker Suzlon Energy Ltd. is seeking to loosen some conditions.
The Pune-based company is asking its lenders to accept new convertible debt in place of interest payments due this quarter on its restructured loans, people familiar with the matter said, asking not to be identified, because the matter is private.
India has instituted the world’s biggest lockdown to slow the spread of Covid-19, adding to strains for already ailing companies as the economy is set to fall into its first annual economic contraction in decades.
Suzlon approved a restructuring proposal in February that involved issuing shares or equity linked instruments of as much as 10 billion rupees ($132 million) if needed.
In its recent request to loosen terms, the company has asked to convert interest payments of about 2.5 billion rupees due on the restructured loans into convertible debt due in 20 years, the people said.
A Suzlon spokesman declined to comment.
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