In an earlier post,I had indicated how the departure of the CFO indicated bearish times ahead for Suzlon.
Since then, the stock has tanked by around 20%.
Now, one of their most respected independent directors Ashish Dhawan has resigned from the company effective 25 May, 2012.
This month is crucial for Suzlon as their FCCB repayments are coming up in June 2012.It needs to repay around 360 Million $ by June 2012 and another 209 Million $ by Oct 2012.
In a press release to NSE, Suzlon has mentioned that it is renegotiating with the lenders to extend the maturity date by 45 days.It also expressed “confidence” that it will be able to repay its lenders via new borrowing arrangements.As such, its convertible bonds rallied after hitting a four month low.
Am reminded of an investor conference I attended a long time back.Somebody asked the promoter Mr.Tanti on why he named his company Suzlon.
He answered Suzlon is a combination of two words.
Suzlon=SujBhuj (Gujarati for Commonsense/Shrewdness) + Loan !!
So loans are part of the company’s DNA !!