Green Street: The stakes are high, but Suzlon still holds the cards in stand-off with bondholders

Wind turbine giant Suzlon received something of a shock when holders of $221m in foreign-currency convertible bonds (FCCBs) due to expire this month refused to grant a two-month extension.

The decision adds to the Indian company’s short-term financial problems and follows news that it is pursuing legal action in New York to make sure it receives a much-needed $208m payment from troubled developer Edison Mission.

But it is too early to push the panic button. Suzlon is in a position to play hardball with the FCCB holders, and will do so if it has to. Industry sources point out that the FCCB debt is unsecured, and that if the company is pushed into a “doomsday” Log in to read complete article.

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