State Bank of India has approved a proposed resolution plan of Suzlon Energy, under which the company’s Rs 12,700 crore debt will be converted into sustainable and unsustainable debt and will be repaid over 20 years, reported Mint, citing two bankers familiar with the matter.

As per the proposed plan, the lenders will have to take a haircut of 65 percent on the debt, said the report. In the first 10 years, Suzlon Energy will repay sustainable debt, which is 32-35% of the total, according to Mint.

Mint also reported that a consortium of lenders led by SBI will hold a 10 percent stake in the company and 49 percent stake in unit Suzlon Global Services.

The promoter has also committed to raise Rs 275 crore and is in talks with other lenders for working capital loans, added the newspaper, citing the first person mentioned earlier.

The company had reported a net loss to Rs 742.91 crore in December quarter mainly on account of lower revenues.

Total income from operations declined to Rs 672.99 crore in the quarter ended on December 31, 2019, from Rs 1,112.34 crore a year ago, the company said in a filing to the BSE.