Indian corporates struggle with FCCB redemptions

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A fifth of foreign currency convertible bonds (FCCBs) issued by Indian companies and which are in line for redemption in 2012 are likely to default, according to a report by credit rating agency Fitch Ratings published on February 22.Fitch says a total of 59 Indian companies face redemption of $7 billion in FCCBs during 2012. About 63% of the amount due is likely to be repaid from a combination of internal accruals and fresh borrowings, while 17% is expected to undergo restructuring (mostly t