Suzlon Energy to offer India banks 68% haircut on debt restructure deal

The fresh proposal follows an assessment by Suzlon's rating company, on how much debt can be sustainably recast. A meeting with creditors is planned for next week, one person said

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 Rs 113 billion ($1.6 billion) of outstanding debt into Rs 36 billion of new debt, translating to a 68 per cent discount, the people said, asking not to be identified as the terms are private. Lenders had earlier indicated a willingness to take a 50 per cent haircut, the people said.

The fresh proposal follows an assessment