Oct. 11, 2012
-- Suzlon paid the first FCCB in July without any holdbacks. Company showed great commitment than inspite of the fact that the money could have been utilized for the business. Primary Lender( 11 Nationalized banks) are completely aligned with the company and totally supports their strategy of funding business. Only few of bondholder disagreed to the EXTENSION behaving against majority and irresponsibly. This will cause the devaluation of bonds and overall loss of bondholders in general.
Suzlon is not the first company to do such thing. Infact Suzlon had just asked for four month extension to arrange for the money as International conditions has put a bit pressure on the cash flow The decision of bondholders seems strange considering earlier FCCB payments by Suzlon within time. Suzlon will have more cash flow to meet its liabilities towards Vendors, Employees and customers which have kept significant trust in the organization.
This does not impact the day to day business of the company at all. Or what impact does this have on other stakeholders