Wind-turbine maker Suzlon Energy Ltd has defaulted on the payment of foreign currency convertible bonds (FCCBs) worth $172 million (Rs 1,183 crore).
The company said in a stock exchange filing that the company failed to make the payment that was due on July 16.
The payment was the last tranche of the $546.91 million bond series, first restructured in 2014, it added. The Pune-based company had converted $375 million from the total $546.91 million FCCB into equity in 2018.
Suzlon also said that it is in talks with various stakeholders to resolve its debt problems. It didn't give any details of the discussions.
In 2012, Suzlon had become India’s biggest defaulter of convertible notes. The same year, the firm started a corporate debt restructuring process.
The company has net term debt of Rs 7,761 crore and working capital debt of Rs 3,380 crore. It had also defaulted on its debt in March. The following month, CARE Ratings cut Suzlon's ratings on long-term bank loans worth Rs 16,185 crore to ‘Default’.
For Brookfield, a deal with Suzlon would expand its presence in India where it has already invested in sectors such as infrastructure, hospitality, real estate and renewable energy.
Suzlon has struggled to raise funds and resolve its debt problems for several years. It has also sold some assets to mobilise funds. In November 2018, for instance, it sold its remaining 51% stake in two solar power ventures to Ontario-based Canadian Solar Inc.
For 2018-19, Suzlon reported a consolidated net loss of Rs 1,527 crore.