Will bankers save Suzlon again?
When many billionaires surrendered their businesses to the Insolvency and Bankruptcy Code (IBC) -- Suzlon head Tulsi Tanti managed to scrape through the financial difficulties. The situation is not same as before

- Sep 10, 2019,
- Updated Sep 11, 2019 7:42 AM IST
Over the last seven years, wind turbine maker Suzlon Energy has been in the eye of the storm after failing to meet its financial commitments. But lenders had given a long rope for survival-- restructured loans in 2013; time to sell-off assets to settle loans and facilitated Sun Pharma chairman Dilip Shanghvi to come and aid wind energy major headed by Gujarati businessman Tulsi Tanti. When many billionaires surrendered their businesses to the Insolvency and Bankruptcy Code (IBC) -- Tanti managed to scrape through the financial difficulties. The situation is not same as before.
The new issues started when Suzlon failed to make payment of principal of $172 million on outstanding foreign currency convertible bonds (FCCBs), due in July. It was reportedly negotiating with Denmark-based Vestas Wind Systems and Canadian investment firm Brookfield Asset Management for majority stake sale at that time. But both fell through owing to higher valuation that lenders led by State Bank of India (SBI) were demanding. Suzlon, in August, had offered a Rs 8,500 crore debt-resolution plan to lenders that was backed by Vestas again. The reports said that the offer would lead to lenders taking a haircut of 44 per cent.
Suzlon defaults on Rs 1,182 crore bond payment; says working on plan to cut debt
In the last financial year, Suzlon posted a loss of Rs 1,537 crore on a revenue of Rs 4,978 crore. It had a consolidated net term debt of Rs 7,751 crore and a working capital debt of Rs 4,000 crore at the end of June. Suzlon has to pay back Rs 1928 crore in this financial year, Rs 835 crore in FY21, Rs 926 crore in FY22 and Rs 4483 crore in FY23 and beyond.
Earlier, Suzlon management sold off Gearbox manufacturing unit Hansen and German subsidiary envion SE (formerly REpower) for paying off the debts, which once swelled to Rs 17,000 crore. With 23 per cent stake, Dilip Shanghvi and family are currently the largest shareholder in Suzlon, who was roped in as a white knight to save the company in 2015. Tanti and family hold less than 20 per cent stake and, of that, more than 76 per cent has been pledged. The firm is valued just Rs 1,500 crore on stock market.
Over the last seven years, wind turbine maker Suzlon Energy has been in the eye of the storm after failing to meet its financial commitments. But lenders had given a long rope for survival-- restructured loans in 2013; time to sell-off assets to settle loans and facilitated Sun Pharma chairman Dilip Shanghvi to come and aid wind energy major headed by Gujarati businessman Tulsi Tanti. When many billionaires surrendered their businesses to the Insolvency and Bankruptcy Code (IBC) -- Tanti managed to scrape through the financial difficulties. The situation is not same as before.
The new issues started when Suzlon failed to make payment of principal of $172 million on outstanding foreign currency convertible bonds (FCCBs), due in July. It was reportedly negotiating with Denmark-based Vestas Wind Systems and Canadian investment firm Brookfield Asset Management for majority stake sale at that time. But both fell through owing to higher valuation that lenders led by State Bank of India (SBI) were demanding. Suzlon, in August, had offered a Rs 8,500 crore debt-resolution plan to lenders that was backed by Vestas again. The reports said that the offer would lead to lenders taking a haircut of 44 per cent.
Suzlon defaults on Rs 1,182 crore bond payment; says working on plan to cut debt
In the last financial year, Suzlon posted a loss of Rs 1,537 crore on a revenue of Rs 4,978 crore. It had a consolidated net term debt of Rs 7,751 crore and a working capital debt of Rs 4,000 crore at the end of June. Suzlon has to pay back Rs 1928 crore in this financial year, Rs 835 crore in FY21, Rs 926 crore in FY22 and Rs 4483 crore in FY23 and beyond.
Earlier, Suzlon management sold off Gearbox manufacturing unit Hansen and German subsidiary envion SE (formerly REpower) for paying off the debts, which once swelled to Rs 17,000 crore. With 23 per cent stake, Dilip Shanghvi and family are currently the largest shareholder in Suzlon, who was roped in as a white knight to save the company in 2015. Tanti and family hold less than 20 per cent stake and, of that, more than 76 per cent has been pledged. The firm is valued just Rs 1,500 crore on stock market.