Shares in troubled turbine manufacturer Suzlon were trading down over 6% on Wednesday after media reports the acquisition of a majority stake by Canadian investor Brookfield has fallen through.
The Economic Times reported that Brookfield has been unable to reach a deal with the India-based company’s lenders.
The investor had been in talks over a potential acquisition since June, according to reports.
Lenders are continuing negotiations with the indebted turbine manufacturer in an effort to secure new investment, the Economic Times added.
Suzlon in May reported debt of Rs11bn for the end of its fiscal year 2019 with a total loss for the 12 months of Rs1,537 crores (€195m).
Brookfield declined to comment. Suzlon did not respond to a request for comment.
The manufacturer meanwhile said it is unaware of any proposed legal action after the Mumbai Stock Exchange “sought clarification” over a media report that bondholders are preparing a case over an unpaid bond. Suzlon defaulted on a $172m bond in mid-July.
The Business Standard reported that bondholders have hired lawyers to plan a strategy.
“The company continues to work on (a) holistic solution for its debt and is in discussions with various stakeholders in relation to its outstanding debt including the bonds,” a Suzlon statement to the stock exchange added.