Suzlon seeks new payment schedule for Martifer's REpower stake

05 November 2008

Mumbai: Wind power major Suzlon Energy is in talks with Portugal's Martifer on a new schedule for the purchase of Martifer's 22.48 per cent stake in Germany's REpower.

A Martifer spokesman had on Monday said the sale of its REpower stake to the Indian company would go ahead as scheduled by 15 December, while Suzlon said last week the deal to increase its holding to 90 per cent would be delayed till 2009.

Suzlon, which had agreed to complete the purchase of Martifer's stake in REpower for 270 million euros ($344 million) by 15 December, said it faced the prospect of legal action by lenders if it went ahead with the acquisition of Martifer's remaining stake in REpower.

Suzlon may be breaching its debt pact with lenders if it goes ahead with the acquisition of Martifer stake, which cannot be pushed back, potentially resulting in legal action from its lenders.

The company owns 66 per cent of REpower and 89 per cent of the voting rights in the German company, including those of Martifer.

Suzlon has provided Martifer with a bank guarantee valid until May, even as chairman Tulsi Tanti said the company planned to use its own cash for the purchase and may raise some debt to buy the stake.