Shares in troubled turbine manufacturer Suzlon were trading up by around 8% after the company said the State Bank of India has approved a “resolution plan”.
The India-based outfit did not disclose further details of the proposals to cut its $1.5bn debt.
The move comes after reporters earlier this week on Bloomberg Quint that said SBI’s board has agreed to a proposal to split the debts and take a 68% haircut on what it is owed.
Other lenders are now expected to mull the resolution plan with their sign-off required before it can be completed.
Earlier this month, Suzlon posted a RS743 crores (€95m) loss in the quarter ending 31 December 2019 as its troubled turbine business continued to operate at a “subdued level”.
The manufacturer also recorded a 632MW order book deficit.