June 24 (Renewables Now) - Canada's Brookfield Asset Management Inc (TSE:BAM.A) is interested in buying a majority stake in Indian wind turbine maker Suzlon Energy Ltd (BOM:532667), the latter told its lenders on Friday, according to local media.
As previously reported, the Indian company is facing default next month on foreign currency convertible bonds (FCCBs). It expected to avoid that by securing an equity investment from Danish peer Vestas Wind Systems A/S (CPH:VWS), but that deal fell through. The Economic Times (ET) now reports, citing informed sources, that Suzlon is willing to accept Brookfield’s proposal and that the transaction could be completed in three to six months. The due diligence process has not yet been completed, though.
According to the report, Suzlon has prepared a one-time settlement proposal for its lenders, which includes the stake sale to Brookfield and “a considerable amount of” waiver of debt.
At the end of May, Suzlon posted a net loss of INR 15.37 billion for the fiscal year through March 2019, compared to a loss of INR 3.84 billion a year earlier. Its consolidated net term debt amounted to INR 77.61 billion and working capital debt was INR 33.8 billion.