Suzlon gets more time to repay FCCBs

Suzlon Group, the world's fifth largest wind turbine maker, today said that holders of the June series of FCCBs today approved the company's proposal for an extension of maturity date of the FCCBs until 27 July 2012.

The measure extends the maturity date of the June series of FCCBs till 27 July 2012, with the option for the company to bring forward the payment to a nearer date, by providing five days notice to bondholders.

Speaking on the development, Kirti Vagadia, chief financial officer of Suzlon Group, said: ''I am very pleased to inform that our bondholders have approved our request for up to a 45 day extension of maturity on our June tranche of FCCBs.

The resolutions were approved by significant majorities, with 100 per cent and approximately 93 per cent of bondholders who voted in the June 2009 and June 2007 series, respectively, being in favour of the extension.''

''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.

''We 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. I am happy to report that the process is on track and, along with our plans to divest non-critical assets, we are confident of meeting our near term FCCB obligations."

The company's global spread extends across Asia, Australia, Europe, Africa and North and South America with wind energy capacity approaching 20,000 MW installed
in 28 countries, operations in 33 countries and a workforce of over 13,000.

The Group offers one of the most comprehensive product portfolios – ranging from sub-megawatt on-shore turbines at 600 Kilowatts (KW), to the world's largest commercial 6.15 MW offshore turbine – built on a vertically integrated, low-cost, manufacturing base.