Suzlon Energy Ltd is likely to default on redemption of $229 million in foreign currency convertible bonds (FCCBs) due on Thursday after bondholders rejected a four-month extension.
Suzlon Group, the world's fifth-largest wind turbine maker, today said bondholders have rejected its proposal seeking a four-month extension of the maturity dates of the two series of foreign currency convertible currency bonds (FCCBs) due in October 2012.
''I regret to announce today that the bondholders' meetings did not achieve the consensus we were hoping for and the four-month extension sought by us has not been granted,'' Kirti Vagadia, chief financial officer – Suzlon Group, said.
''We firmly believe that the interests of all our stakeholders are best served by driving business performance, and therefore our primary focus is to capitalize on our strong business fundamentals, maintaining order momentum, and delivering on `Project Transformation' to create a leaner, more efficient and agile global organisation,'' he said.
Suzlon Group had, in August this year, announced a new imitative to reduce its annual operating expenditure and manpower costs by 20 per cent by the end of the fiscal year 2013.
He, however, said the company continued to enjoy the support and confidence of its secured lenders.