Chart: Suzlon gets 45-day extension for June FCCBs

The deadline extension is a major boost for the company which was facing a lot of pressure for financing its debt repayment of $700 million for the year ending March 2013.

FP Staff December 20, 2014 18:03:09 IST
Chart: Suzlon gets 45-day extension for June FCCBs

Suzlon's management can cheer for now as bond holders have approved the extension for its June Foreign Currency Convertible Bonds (FCCBs).

The holders of the June series of the FCCBs, in their meeting held on 11 June, have approved the company's proposal for an extension of maturity date of the FCCBs till 27 th July, 2012, the company said in a statement.

The deadline extension is a major boost for the company which was facing a lot of pressure for financing its debt repayment of $700 million for the year ending March 2013. This includes FCCB repayment of $360 million in June and $209 million in October.

Chart Suzlon gets 45day extension for June FCCBs

Reuters

Commenting on this development, Kirti Vagadia, Chief Financial Officer, Suzlon Group. said "We have also received the necessary permission from the RBI for this extension. We believe this underscores the strong relationship we have built with our bondholders and banks, and their confidence in our plans".

He further added that they had requested for extension in order to ensure that there is adequate time to obtain the requisite approvals and to close administrative documentation necessary to complete this refinancing exercise.

Chart Suzlon gets 45day extension for June FCCBsConcerns over this repayment were also seen in the sharp fall in its stock price which has crashed by 65 percent in the last one year. However, the stock closed up 1.11 percent today.

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