With WinWind, a Finland-based wind power company owned by Chennai-based billionaire C Sivasankaran, filing for bankruptcy, its lender IDBI Bank is staring at a loss of Rs 300 crore.
The company has filed for bankruptcy in Finland, after failing to repay ^300 million (Rs 2,500 crore) of debt to its lenders. The bankruptcy follows the $3-billion (assets) SIVA Group shutting its wireless telephony firm S Tel, following the Supreme Court cancelling 122 wireless telephony licences, including S-Tel’s, in February 2012. The company lost about Rs 1,800 crore on this account. Now, it is waiting the courts to clear the company so that it can sell its telecom assets to other players.
The company has also seen a slowdown in its commodity business in Africa and Southeast Asian nations.
For its woes, WinWind has blamed the current global uncertainty and the fall in demand in the wind energy sector. It said the drop in demand had made it difficult to develop the business, increase sales and record profitability.
IDBI Bank has an exposure of Rs 300 crore to the company. Sources in the company say the bank would be able to secure up to ^15 million euros (about Rs 125 crore) through the sale of WinWind’s wind power business.
When contacted, an official spokesperson of the group said, “The matter is before the court and administrator, pursuant to the decision taken by the WinWind board to file for voluntary bankruptcy. In view of this, we have no comments to offer and we will abide by the decision of the administrator.”
Timeline: C Sivasankaran’s journey
- 1986: Sets up Sterling computers
- 1997: Launches Aircel to launch telecom services
- 2004: Acquires 100% equity stake in Barista coffee chain from Turner Morrison, Tata; Sells 33% stake in Tamil Nadu Mercantile Bank
- 2006: Sells Aircel to Maxis for $800 million
- 2007: Sells Barista to Lavazza, buys 49% stake in Aambi valley; Buys WinWind in Finland
- 2010: Sells Aambi Valley stake back to sahara
- 2011: Accuses Maran brothers of forcing Siva group to sell Aircel to Maxis
- 2012: SC cancels licenses of S-Tel, a small cell phone company
- 2013: WinWind files for bankruptcy
In 1986, the reclusive Sivasankaran started with a small computer business. In time, he set up a pan-India wireless telephony company called Aircel. In the last decade, he bought and sold stake in Tamil Nadu Mercantile Bank, Aamby Valley in Lonavla and Barista Coffee.
In 2006, Sivasankaran sold his telecom company Aircel to Maxis of Malaysia. However, in 2011, before the Central Bureau of Investigation (CBI), he alleged he was pressurised by then telecom minister Dayanidhi Maran to sell the company to Maxis for $800 million. Currently, the CBI is probing the matter.
Sivasankaran owns four per cent stake in Tata Teleservices. Though he has hired a banker to sell the stake, he hasn’t found any takers.
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