Wind turbine supplier Suzlon is facing default in loan repayment amounting to Rs 1205 crore, which is due next week, according to media reports. The bad news comes a day after shares of Suzlon fell about 24 percent intradeay on the Bombay Stock Exchange (BSE). Suzlon's troubles mounted after Danish wind manufacturer Vestas failed to meet the financial deadlines in buying the stakes of the debt-ridden company.
India's largest renewable energy solutions provider has a history of multiple defaults in payments to domestic lenders and creditors. It had a default of Rs1534 crore in Foreign Currency Convertible Bonds (FCCB) in 2012, which was the biggest default by an Indian company. A fine of about one crore rupees was slapped on the company for violating insider trading norms in 2018.
According to reports, the company's losses have also increased from Rs 384 crore in 2018 to Rs 1537 crore in 2019. Suzlon has a debt of about Rs 11,141 crore, according to a report in the Times of India.
Suzlon's stock price had fallen to Rs 2.7 in February, a 52-week low. It then rose to Rs 8.4 in March following reports that Vestas was buying stake in the company. The shares nosedived on reports of further delay in Vestas buying stake.
The company has been struggling with debts and alleged scams since 2012. There are multiple fines pending against the company due to its defaults in payments. According to a statement to the TOI, the spokesperson of the company said that they are committed to reducing their debt and are processing strategic initiatives.