June 11, 2012
Suzlon Group: Bondholders approve extension for June FCCBs
Short-term extension to allow the company to finalize refinancing package
In advanced stage of raising up to US$ 300 million as new facilities from senior secured lenders
Mumbai: Suzlon Group, the worlds fifth largest wind turbine maker, today
announced that holders of the June series of FCCBs, in the meetings held on 11th
June, 2012 (i.e. today), approved the companys proposal for an extension of
maturity date of the FCCBs until 27th July, 2012.
Speaking on the development, Mr. Kirti Vagadia, Chief Financial Officer
Suzlon Group said: I am very pleased to inform that our bondholders have
approved our request for up to a 45 day extension of maturity on our June tranche of
FCCBs. The resolutions were approved by significant majorities, with 100 per cent
and approximately 93 per cent of bondholders who voted in the June 2009 and June
2007 series, respectively, being in favour of the extension. We have also received
the necessary permission from the RBI for this extension. We believe this
underscores the strong relationship we have built with our bondholders and banks,
and their confidence in our plans.
We requested for extension in order to ensure that there is adequate time to obtain
the requisite approvals and to close administrative documentation necessary to
complete this refinancing exercise. I am happy to report that the process is on track
and, along with our plans to divest non-critical assets, we are confident of meeting
our near term FCCB obligations."
The measure extends the maturity date of the June series of FCCBs till 27th July,
2012, with the option for the company to bring forward the payment to a nearer
date, by providing five days notice to bondholders.