Shares in troubled turbine manufacturer Suzlon have jumped by 46% since the start of the year following media reports that the company will offer to restructure its debt with lenders at a higher discount than had previously been under consideration.
Suzlon plans to offer to swap its debt of Rs113bn (€1.4bn) to Rs36bn, representing a discount of about 68%, according to a report by Bloomberg citing “people familiar with the matter”.
The report said that previously the lenders had been willing to accept a 50% discount.
A meeting with the creditors is planned for next week, the Bloomberg story added.
Shares in Suzlon were trading at Rs2.74 at press time, up from Rs2.29 at the start of the day and Rs1.87 at the start of 2020.
Suzlon had not responded to a request for comment at press time.
Last September, it was reported by Bloomberg that a potential debt resolution deal supported by Vestas fell through when the latter withdrew support, while in August a similar deal with Brookfield Asset Management was also reported to have come to nothing.
In the company’s latest results, for the second quarter of the 2020 financial year, Suzlon posted a loss of Rs778 crores, wider than the loss of Rs628 crores reported in the same period last year.