Renewable energy major, Suzlon Energy might be looking at a likely default on loan payments on Thursday after its bond holders did not give their consent to extend repayment by a period of four months.

The company might default on the payment of redemption of more than $200 million in overseas convertible bonds that become due on Thursday. Suzlon was among the leading Indian firms to take advantage of cheap funds through convertible bonds market before the global financial crisis brought a slowdown.

"I regret to announce today that the bondholders' meetings did not achieve the consensus we were hoping for and the four-month extension sought by us has not been granted. We expect that an acceptable solution for all stakeholders will be arrived at the earliest possible," Kirti Vagadia, chief financial officer of Suzlon, said in a statement.

The company is struggling in the market due to a fall in demand for its products amid a slowdown in the global economy. There have been some concerns in the market about the company's ability to redeem its bonds over the previous maturity date. The investors and creditors are now carefully watching the company and determine its ability to pay on the maturity of the next bond in October.