Shares in embattled Indian wind OEM Suzlon plunged to near year-lows following reports that a $1.2bn debt repayment plan collapsed when Vestas withdrew its backing.

Suzlon – which has already defaulted on a chunk of its debts – withdrew the plan when it lost the support of Vestas, said the Economic Times, citing sources familiar with the matter.

Suzlon shares fell 10% to 3.20 rupees in late afternoon trading in Mumbai, flirting with a 52-week low of 3.10 rupees.

The plan lodged with the creditors of the debt-laden Indian group rested on the support of an unnamed investor – widely believed to be Vestas – and “infusion of additional equity in the company, purchase of a business line by the investor and waiver of a considerable amount of existing debts by the lenders”.

Vestas – which has never publicly confirmed its interest in acquiring a majority stake in Suzlon – was reportedly, until it withdrew, the only entity left to support a debt resolution by the Indian group after the earlier departure of Canadian investor Brookfield, which was also said to be at one stage considering buying into Suzlon.

A statement sent to Recharge by the Danish OEM said: “Vestas’ strategy is based on organic growth and as we have said before on similar speculation, our industry-leading position means we are open to additional bolt-on opportunities to accelerate our growth strategy should such arise.

“Vestas will give no further comments at this point, but will of course comply with applicable laws and regulations, including the release of company announcements if or when required.”

A spokesperson for Suzlon told Recharge the OEM had no comment.