The share price of Suzlon fell 10% today following reports that Vestas had removed its backing to a debt resolution plan for the troubled Indian turbine manufacturer.
Shares were trading at Rs3.2 (€0.04) on the Mumbai Stock Exchange at press time today, down from Rs3.57 at the start of the trading day in India.
Bloomberg, citing “people familiar with the matter”, had reported that Suzlon withdrew an offer to repay its lenders approximately Rs85bn after Vestas stopped supporting the deal.
The report said that the proposed repayment plan was the only one on offer to lenders, after Brookfield Asset Management had dropped out of negotiations for a similar deal last month.
A Vestas spokesman said: “Vestas’ strategy is based on organic growth and as we have said before on similar speculation, our industry-leading position means we are open to additional bolt-on opportunities to accelerate our growth strategy should such arise.”
The company said it would not give further comment at this point, while Suzlon declined to comment.
In May, Suzlon reported debt of Rs11bn for the end of the fiscal year 2019 with a total loss for the 12 months of Rs1537 crores (€195m).