In order to streamline its debt and reduce cost,
a two-year moratorium on principal and interest payments with banks for its its debt.
The lead lender to the company is State Bank of India, which has about $659 million exposure to Suzlon. Indian banks, especially state lenders, tend to help big companies get through tough times by easing loan terms through a corporate debt restructuring mechanism.
The company, which had a net debt of Rs 130.17 billion at the group level at the end of June, has not disclosed how much of this would be restructured by banks. But the debt would be restructured for a period of 10 years.
The firm defaulted on a $200 million convertible bond redemption earlier this month when bondholders rejected a four-month repayment extension sought by the firm.
However, the firm said its ongoing discussions with bondholders continued to be "constructive and progressive", and it expects "an acceptable solution for all stakeholders will be reached at the earliest possible date."
Meanwhile, the company said it is suspending guidance for the current fiscal year ending March 2013 as liquidity constraints, a volatile market and the debt restructuring process are likely to impact its performance.