Suzlon should merge REPower with itself: SBI

The Pune-based company's debt restructuring is under discussion

State of Bank of India, which is one of the lenders to wind power major Suzlon, has said that the company should consider merging its  European subsidiary REPower with itself. This, says SBI's deputy MD for corporate banking S.B. Nair, will help the company reduce its leverage since REPower is a debt-free company.  Suzlon's rupee debts are Rs 14,000 crore. Of which, SBI's exposure alone stands at Rs 3,500 crore.

Nair said that the company's debt restructuring is under discussion at the moment.

The Pune-based company, meanwhile, has said that it will not be able to honour FCCBs worth $220.8 million that have come up for redemption this month. Suzlon's bondholders have rejected a four-month extension pushing the stock price down nearly 5 per cent during trade today.

 

Suzlon had offered incentives to the bondholders for the extension and has said that it will like to renegotiate with them.