The Suzlon Loan DNA

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 !!

What was that again?

Your strange somnolence on the occasion of imminent election of the Nation’s President is showing up our bankruptcy of talent that we cannot announce a name better than the current finance minister who according to me is a guardian of the stolen wealth of the nation and a protector of the grand dacoits, who have made us miserable beggars. Believe me the nation is not wrong in concluding that we too have skeletons in our cupboards which make us impotent spectators of the rape of our finances.“-wrote Ram Jethmalani to BJP President Nitin Gadkari

Linkfest:May 29, 2012

Some stuff I am reading today morning:

Spainish markets crater (BusinessInsider)

Won’t touch diesel prices -Jaipal Reddy (WSJ)

One in four Indians rates life as “suffering” (FinancialExpress)

Jindal Steel gets Bolivian boot (BS)

Evaluating responses to India’s macroeconomic crisis (AjayShah)

Pilot strike at Air India mars Dreamliner debut (Bloomberg)

Quite Funny-Unreal moments after KKR became IPL Champions (UnrealTimes)