Suzlon Energy's bondholders plan to take legal action over default

Banks unlikely to agree to a steep haircut

Suzlon Energy’s bondholders are planning to take legal action against the company for defaulting in repayment in mid-July. The bondholders have hired a legal firm, Kirkland and Ellis, to chalk out strategy. 

This comes in the backdrop of banks not agreeing to an informal offer by Brookfield which had offered to take over the company, provided banks take a significant haircut on their Rs 10,300-crore exposure. The secured lenders of Suzlon Energy and its subsidiaries had signed an Inter-Creditor Agreement in terms of circular of the Reserve Bank of India, dated June 7 for resolution of the debt of Suzlon