Suzlon acquires wind park in US to settle dispute with Edison

Apr 03 2014, 03:44 IST
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SummaryCo may sell farm later to recover money

Suzlon Group has acquired the 240 MW Big Sky Wind Park from Edison Mission Energy to end a two-year dispute with Edison over non-payment of a loan. Suzlon had gone into litigation to recover the money from Edison and was banking on these recoveries to repay its own debt.

Suzlon had signed a $236.1-million deal in October 2009 to supply turbines for the farm. It provided the financing for through a loan.

A total of $208 million was outstanding. Edison delayed payments, and then went bankrupt.

Edison failed to repay Suzlon, blaming the indian company for delays in commercial operations. It also alleged defects in the turbines. In September 2012, Suzlon commenced legal proceedings against Big Sky in the New York state court saying the turbines met all standards.

Meanwhile, Edison is being sold to Princeton-based NRG Energy Holdings, Inc. and the Big Sky Wind park was identified as a non-core asset that had to be disposed of before April 1, 2014. Suzlon and Edison were in talks, and the discussions ended with Suzlon taking over the farm. The lawsuit will be withdrawn.

Suzlon said it would consider selling the wind farm at an appropriate time to recover its money.

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