Suzlon's liquidity crisis likely to require FCCB, loan restructurings barring game-changing takeover

28 February 2019

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Suzlon Energy Ltd, a Pune, India-based wind energy equipment manufacturer and service provider, is facing a liquidity crisis ahead of the 16 July maturity of its USD 172m (INR 12.3bn) outstanding out-of-the-money foreign currency convertible bonds (FCCBs). While management is reportedly engaged in a discussion with a leading rival that conceivably could ameliorate liquidity concerns, Suzlon's prospects appear bleak. With deliveries of wind powered turbines expected to sag in the coming quarters and limited progress on other asset monetisation, yet another full-blown restructuring looks increasingly likely.