Investors in Indian corporate debt are watching whether a stressed wind-turbine maker will repay its dollar-denominated convertible bonds due on Tuesday, and help avoid further widening of strains in the nation\u2019s credit market.<\/p>\n
Suzlon Energy Ltd., which became India\u2019s biggest convertible note defaulter when it missed payments in 2012, must repay $172 million outstanding on such securities that were issued as part of a debt restructuring. While that revamp helped the company\u2019s shares surge in 2014-2015, they\u2019ve since slumped after India\u2019s shift to auctions for building wind projects increased competition and diluted Suzlon\u2019s market share.<\/p>\n
The company\u2019s bank facility ratings were cut to default by Care Ratings in April after it failed to meet payback obligations to its lenders. Any delay in repayments on the convertibles could further spook credit investors already reeling under a spate of defaults in the last year, from IL&FS Group to Dewan Housing Finance Ltd.<\/p>\n
Some traders in Suzlon\u2019s bonds are pinning their hopes on a proposed acquisition of the embattled company by Toronto-based Brookfield Asset Management Inc. A person familiar with the matter said earlier in July that Brookfield may make a binding offer for a stake in the company as soon as the end of the month.<\/p>\n
\u201cSuzlon\u2019s bondholders don\u2019t have many choices now,\u2019\u2019 according to Raj Kothari, London-based head of trading at Jay Capital Ltd. \u201cThe redemption will depend on the progress of the Brookfield deal.\u2019\u2019<\/p>\n
A spokeswoman at Suzlon, which is based in Pune in the Maharashtra state, declined to comment.<\/p>\n
Shares of the company were at Rs 4.86 at 12:45 p.m. in Mumbai, close to the lowest since its 2005 listing on the exchange.<\/p>\n","protected":false},"excerpt":{"rendered":"
Investors in Indian corporate debt are watching whether a stressed wind-turbine maker will repay its dollar-denominated convertible bonds due on Tuesday, and help avoid further widening of strains in the nation\u2019s credit market. Suzlon Energy Ltd., which became India\u2019s biggest convertible note defaulter when it missed payments in 2012, must repay $172 million outstanding on such securities that were issued as part of a debt restructuring. While that revamp helped the company\u2019s shares surge in 2014-2015, they\u2019ve since slumped after India\u2019s shift to auctions for building wind projects increased competition and diluted Suzlon\u2019s market share. The company\u2019s bank facility ratings […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[132],"tags":[],"class_list":["post-282317","post","type-post","status-publish","format-standard","hentry","category-power"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/282317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=282317"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/282317\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=282317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=282317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=282317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}