Suzlon Energy has offered creditors a $1.2 billion (Rs 85 billion) bad-debt resolution plan, reports Bloomberg.
If accepted, the resolution plan suggests that the creditors, led by State Bank of India (SBI), take a 44 percent haircut on the total debt.
The news came after bondholders threatened the country’s largest wind-turbine maker of legal action after repayment default last month.
Brookfield Asset Management which was in talks to infuse fresh equity in the company dropped out and Vestas Wind Systems A/S remains as the only bid backing the settlement plan, the wire quoted sources say.
The Pune-based company has been battling heavy losses amidst rising operational costs and competition as it looks for a long-term strategic investor.
Meanwhile, the news lifted Suzlon shares to green on the NSE and BSE since early August 9.
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