Suzlon Falls After Writing Down Illinois Wind Farm: Mumbai Mover

Feb 17, 2014 12:31 am ET

Feb. 17 (Bloomberg) -- Suzlon Energy Ltd., the Indian wind- turbine maker seeking to extend repayment of defaulted bonds, declined the most in seven months in Mumbai after writing down the value of a U.S. wind farm.

The shares fell as much as 9.6 percent, the most since July 31. They traded 5.9 percent lower at 10.30 rupees as of 10:27 a.m. The benchmark S&P BSE Sensitive Index rose 0.2 percent.

Suzlon booked a 2.5 billion-rupee ($40 million) charge on the Big Sky farm in Illinois after reassessing for the second time the amount it expected to recover from a 240-megawatt, turbine-supply deal, Kirti Vagadia, group head of finance, said in a phone interview Feb. 14 after the close of markets.

Suzlon, the fifth-largest turbine maker, needs to raise cash to repay creditors after committing India’s biggest convertible-bond default in 2012 and restructuring 95 billion rupees of debt last year. It has been trying to recoup $208 million from Big Sky for machines sold in 2009 and wrote down the value by 4 billion rupees last year.

Big Sky was formerly owned by Edison Mission Group, a unit of Edison International. NRG Energy Inc. agreed in October to buy most assets of bankrupt Edison Mission.

Vagadia declined to comment on when Suzlon expects payment, saying it depends on the outcome of a U.S. court case. The Pune- based manufacturer sued Big Sky for payment in September 2012 in New York.

Suzlon’s net loss narrowed to 10.9 billion rupees in the fiscal third quarter from 11.5 billion rupees a year earlier, it said on Feb. 14.

--Editors: Abhay Singh, Indranil Ghosh