* In talks with senior secured lenders to restructure loans
* Group's net debt at 130.17 billion rupees at June-end
* Ongoing talks with bondholders "constructive, progressive"
(Adds details throughout)
MUMBAI, Oct 29 (Reuters) - India's Suzlon Energy,
which defaulted on a $200 million convertible bond redemption
earlier this month, has begun talks with senior secured lenders
to restructure its debt over 10 years.
The world's fifth largest maker of wind turbines is
negotiating for a two-year moratorium on principal and interest
payments with banks, it said in a statement on Monday, a move
that could help the beleaguered company streamline its debt and
At the group level, Suzlon had net debt of 130.17 billion
rupees ($2.45 billion) at the end of June. It was not clear how
much of this amount will be restructured by banks.
Bondholders earlier this month rejected a four-month
repayment extension sought by Suzlon.
State Bank of India, which has about $659 million
exposure to Suzlon, is the lead lender to the company. A senior
executive at the bank declined to comment immediately.
Indian banks, especially state lenders, tend to help big
companies get through tough times by easing loan terms through a
corporate debt restructuring mechanism.
Suzlon said on Monday its ongoing discussions with
bondholders continue to be "constructive and progressive", and
it expects "an acceptable solution for all stakeholders will be
reached at the earliest possible date."
Meanwhile, the company said it is suspending guidance for
the current fiscal year ending March 2013 as liquidity
constraints, a volatile market and the debt restructuring
process are likely to impact its performance.
Suzlon has been under pressure in recent years from a
slowdown in global turbine sales as well as its debt, and it has
lost money for the past three years. While it has an order book
of $7.2 billion, tight working capital squeezed its operations
in the June quarter.
(Reporting by Swati Pandey and Prashant Mehra; Editing by