Connect with us

Hi, what are you looking for?

Image: Zach Shahan, CleanTechnica

Clean Power

Indian Wind Energy Company Suzlon In Deep Trouble After Debt Default

One of the worst fears of the leading wind energy company in India has come true. For years, Suzlon Energy had been flirting with financial turmoil and recently the company witnessed a rather unfortunate milestone which could define the company’s future.

One of the worst fears of the leading wind energy company in India has come true. For years, Suzlon Energy had been flirting with financial turmoil and recently the company witnessed a rather unfortunate milestone which could define the company’s future.

As several market analysts had cautioned, Suzlon Energy has defaulted on a payment due against foreign currency convertible bonds (FCCBs). The company failed to make a payment worth US$172 million. We recently covered Suzlon’s FCCB predicament. The company had raised foreign debt worth US$547 million; of this US$375 million were converted to equity in December 2018. Suzlon did not have the option for debt-equity conversion, and in the absence of sufficient liquidity, the company defaulted on the payment due.

Suzlon Energy first informed the Singapore Exchange Securities Trading Limited (SGX), where the said bonds were listed, that it failed to make payment of the principal amount of US$172 million. Subsequently, the two Indian bourses where the share of Suzlon Energy are listed asked the company for clarification.

The company, issuing the clarification, stated that it is ‘working on a holistic solution for its debt’ and is in discussions with various stakeholders regarding the payment of outstanding bonds. The company also reiterated, likely to instill some confidence among shareholders and creditors, that it has signed an Inter Creditor Agreement (ICA) in June to resolve the outstanding debt. 

In the latest development, the company has also failed to make timely payments against domestic loans. One of the Indian banks that had issued a loan to Suzlon Energy classified the company’s debt as a ‘non-performing asset’. A bank classifies an outstanding debt as a non-performing asset if a company fails to make timely repayments due against the debt. According to media reports, Suzlon Energy has taken loans from at least half a dozen Indian banks.

We had recently covered a story stating that Canada’s Brookfield Asset Management is looking to acquire Suzlon Energy and its subsidiaries. According to media reports, Brookfield is eyeing the company’s operations and maintenance arm which is a major source of revenue for the wind energy company. Adding new clients and projects has been a challenge for Suzlon for some years now due to a significant increase in competition and regulation in capacity addition.

However, the company claims to have a portfolio of 18 gigawatts under its operations and maintenance contracts globally. In India, the company services 15 gigawatts of wind energy capacity which accounts for more than 40% of the operational capacity in the country. It seems sale of the O&M arm is the only possible solution for Suzlon’s persistent debt woes. If the Inter Creditor Agreement and Brookfield’s possible takeover fail the banks can take the company to the National Company Law Tribunal to enforce bankruptcy proceedings.

Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

New Podcast: Cruise Talks Autonomous Driving Tech, Regulations, & Auto Design

New Podcast: Battery Mineral Mining Policies & Regional Trends

Written By

An avid follower of latest developments in the Indian renewable energy sector.


#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.


Support our work today!


Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports


EV Sales Charts, Graphs, & Stats


Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like


Old(ish) Audi e-tron batteries are getting another life in India. In Uttar Pradesh, a German-Indian startup founded by Berlin-based Prodip Chatterjee, Nunam, has turned...

Clean Power

Tata Power is India’s largest integrated power utility, and it is putting more of its weight behind solar now — rooftop solar, no less....

Clean Transport

Mumbai railway stations will be getting EV charging stations as part of a new initiative to promote e-mobility in the Mumbai region. The program...

Clean Power

To ensure only quality equipment is used at solar power projects and, possibly, provide some protection to domestic manufacturers from a flood of Chinese...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.