Suzlon Energy receives approval from shareholders to sell Senvion

Board of Directors for wind turbine manufacturer Suzlon Energy has approved the sale of its German unit Senvion to US based Centrebridge Partners.

The shareholders have also given nod to issue up to one billion equity shares for the transaction on preferential basis.

The India based firm is presently undergoing severe debt crisis and has sought assistance under a corporate debt restructuring scheme for financial revival. It has obtained mandatory approval from the Corporate Debt Restructuring Empowered Group (CDREG) as well.

Senvion divestment is expected to help the firm in making investments, offering loans, guarantees and provide securities above the prescribed limits.

Suzlon group chairman Tulsi R Tanti said: "We will capitalise on our technological prowess, sustained market leadership of 18 years and best-in-class services to tap the immense growth opportunities in our home market, USA and other emerging economies."

Suzlon had announced about the possible sale of its Hamburg based unit earlier as well. The firm had anticipated it to be sold at loss and intended to use it to reduce its growing debts, reports Business World.

The company had acquired Senvion in 2007 through an Rs73bn ($1.17bn) investment.