Bondholders have rejected a proposal by the Suzlon Group to grant it a four-month extension of the maturity dates of the two series of Foreign Convertible Currency Bonds (FCCBs) due in October 2012.
Kirti Vagadia, Chief Financial Officer-Suzlon Group, said: “I regret to announce today that the bondholders’ meetings did not achieve the consensus we were hoping for and the four-month extension sought by us has not been granted.”
At 11.05 am, the company shares were trading down 3.63 per cent at Rs 15.95 on both the bourses.
Suzlon Energy Ltd had issued $200 million Zero Coupon Convertible Bonds and $20.8 million 7.5 per cent Convertible Bonds, both due in October 2012.
On September 18, the company had requested bondholders for a four-month extension of October FCCBs to allow it to close various financing measures and meet its redemption obligations in complete alignment with all stakeholders.
“We continue to enjoy the support and confidence of our secured lenders for our business objectives. We believe our ongoing engagement with them and our bondholders continues to be both constructive and progressive, and geared towards addressing our liabilities and our overall capital structure in a holistic manner. We expect that an acceptable solution for all stakeholders will be arrived at the earliest possible,” Vagadia said.