Suzlon bondholders reject debt extension; shares fall

Shares of turbine maker Sulzon Energy plunged after its bondholders refused to extend the deadline for redemption of two series of foreign currency convertible bonds ( FCCBs) amounting $ 220.8 million, which is due today (October 11, 2012).

The stock which opened at Rs 16.30 on BSE traded 3% down at Rs 16.05 at 12 noon after hitting a low of Rs 15.70.

In a statement to the stock exchange, Kirti Vagadia, chief financial officer of the company said ""I regret to announce today that the bondholders' meetings did not achieve the consensus we were hoping for and the four-month extension sought by us has not been granted"".

Around 22.77 lakhs shares have changed hands on BSE as against an average of 24 lakh shares traded in last five trading sessions.

"We firmly believe that the interests of all our stakeholders are best served by driving business performance, and therefore our primary focus is to capitalize on our strong business fundamentals, maintaining order momentum, and delivering on Project Transformation to create a leaner, more efficient and agile global organization" Kirti added.

The stock has declined nearly 60% in last one year shedding Rs 3,670 crore.