Troubled Indian wind group Suzlon has been given the green light by lenders for a package of measures to restructure its $1.5bn-plus debt pile.

Lead creditor State Bank of India – which had already approved the plan – said the rest of Suzlon’s lender consortium has now unanimously agreed, clearing the way for implementation of a plan vital to the company’s ongoing viability.

The plan involves splitting the turbine OEM's debt into “sustainable and unsustainable” piles, and according to reports could see lenders taking stakes in the business in return for a steep ‘haircut’ on what they are owed.

A statement announcing lender approval said Suzlon “is currently working on finalising various definitive agreements with the lenders”.

An extraordinary meeting of shareholders is due to be held on 7 April to discuss the plan.

Suzlon’s board agreed the restructuring measures on 27 February after a late-night meeting.

A list of possible actions includes the issuing of equity shares converted from debt and the authority for “divestment/dilution/disposal” of the company’s investments or assets.

The deal lines up Suzlon’s existing backers, including founder Tulsi Tanti and Indian billionaire Dilip Shanghvi, to inject 4bn rupees ($55m) in return for shares or other instruments.

Suzlon booked a net loss of 7.43bn rupees ($104m) for its latest financial quarter ending 31 December, as it admitted its wind turbine operations were “at a subdued level with nominal allocation of capital”.