Suzlon Energy shares fall 9% after default on bond payments

Suzlon Energy shares declined about 9 percent on Wednesday after the wind turbine maker defaulted on a payment of $ 172 million worth of principal amount related to outstanding bonds. Suzlon energy shares fell as much as 8.9 percent to Rs 4.25 per share intraday on the National Stock Exchange. At 9.40 AM, the stock was trading 3.23 percent down at Rs 4.50 per share, while the Nifty was up 7.75 points, or 0.07 percent at 11,670.35. The share fell about 14 percent this year.

"The company has not made the payment of the principal amount of the outstanding bonds, being $172,000,000 (about Rs 1,180 crore), which was due on July 16, 2019, (Tuesday) in accordance with the terms and conditions of the bonds," Suzlon Energy said in a statement.

It added that the company is working on a holistic solution for its debt and continues to be in discussions with various stakeholders in relation to its outstanding debt, including the bonds.

The outstanding principal amount of $172 million was part of a bond issue of $546.91 million.