Suzlon Energy Denies Reports of Filing for Bankruptcy

Suzlon Energy has specifically denied all reports suggesting that it has filed for bankruptcy and that it will soon be approaching the NCLT.

Debt-laden renewable energy solutions provider Suzlon Energy on Monday specifically denied all reports suggesting that it has filed for bankruptcy and that it will soon be approaching the National Company Law Tribunal (NCLT).

“We wish to reiterate that Suzlon’s debt resolution and revival plans have never been dependent on any single option,” it informed stock exchanges in regulatory filings.

“The lenders and the company continue to work hard for a sustainable resolution plan to preserve the value of the company since the relevant stakeholders are mindful about Suzlon‘s contribution to Indian renewable energy sector, its strong market position together with its order book as well as industry potential,” it added.

The company said the lenders have already signed an inter-creditor agreement. In terms of the June 7 circular of Reserve Bank of India, the lenders have time till January 2020 to work on a sustainable resolution plan before taking any extreme steps.

“Considering the interest of all stakeholders, the lenders and the company are working on a constructive solution,” it said.

For 2018-2019, Suzlon company reported a consolidated loss of Rs 1,527 crore and debt of Rs 9,624 crore. Care Ratings assigned a default measure for the company in April this year.

In July, the company failed to pay the principal amount of 172 million dollars for outstanding bonds which were due. The outstanding payment was part of a total bond issuance of 546.91 million dollars.

In August, we had reported that considering its latest financial results for the quarter ending June 30, 2019, Suzlon’s consolidated net loss had narrowed to Rs 336.88 crore in the quarter, on account of lower expenses. The company had reported a loss of Rs 575.10 crore in the corresponding period of the previous financial year. 

The firm’s total income dropped to Rs 851.09 crore, compared with Rs 1,289.94 crore a year ago. In the January-March quarter this year, it had reported a loss of Rs 294.64 crore. The company had reported a net loss of Rs 1,537.19 crore in 2018-19.