Suzlon Energy Ltd. will offer to restructure debt at a steeper discount than Indian banks have been willing to consider so far, said people familiar with the matter, pushing the wind turbine maker closer toward bankruptcy.
The Pune-based company proposes to swap its ₹11,300 crore ($1.6 billion) of outstanding debt into ₹3,600 crore of new debt, translating to a 68% discount, the people said, asking not to be identified as the terms are private. Lenders had earlier indicated a willingness to take a 50% haircut, the people said.
Suzlon will offer to retain ₹1,350 crore of contingent debt, including bank guarantees, that will raise overall recovery for banks to 39.1% from 31.8%.
