Suzlon Energy is among the top five gainers of the BSE, rising to touch its 10% UC at Rs.2.49.
Unconfirmed news report states that SBI has agreed to go ahead with a restructuring proposal wherein it has accepted a haircut of 68% on the debts.
News is that it might also convert a small portion of the debt into equity, which in turn will allow the creditors to cash-in whenever there is a rise in the stock price.
Once this restructuring plan is approved, other lenders in the consortium will also need to approve – at least 66% is required.
Suzlon has some Rs.11,000 crore debt which is at the core of all its woes.