Independent Indian directors quit Suzlon Energy; investor hunt continues
Even as Suzlon Energy scrambles to find a new investor, all independent Indian directors including bank nominees have resigned from the board over the past two months. The company is reeling from Rs 7,000-crore debt and is trying to sell promoter stake to pay it off.
Suzlon, India’s leading wind turbine manufacturer, defaulted on payment of Rs 1,169 crore ($172 million) due to its foreign currency convertible bond (FCCBs) holders in July.
Since then, all independent Indian directors have resigned citing several reasons. CARE Ratings in April downgraded Suzlon’s debt to a default rating.
One of the independent directors who quit said no director would like to remain with a company that had a defaulter status. “It affects the reputation of the director and the other companies that they are associated with,” he said, requesting anonymity.
