Suzlon scrounging to pay debts

Indian wind turbine manufacturer Suzlon Energy wants an extension on more than US$220 milllion in bond payments until 11 February so it can explore selling off non-essential assets and issuing new shares or bonds. The firm had already deferred $360 million in bond payments in July.

Analysts noted that the Suzlon business model, which has resulted in losses for the last three years, has failed to generate positive cash flow despite increasing sales.

Cash-strapped economies and dwindling government subsidies for wind projects have affected the entire industry - including Danish wind giant Vestas, which recently closed a Chinese factory amid takeover rumours. Globally, new wind installations grew only five per cent during 2010-2011, after having grown about 36 per cent annually between 2004 and 2009.

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