Alinta Energy said in a statement today that it has planned a deal with its lenders including TPG. However, the deal needs substantially more work to evolve it to the step where documents are executed.

According to the deal, shareholders will be given 10 Australian cents per unit with a retain ownership of an interest in the Red bank power plant in the state of New South Wales. This exchange will do away with the A$2.8 billion debt that the group is facing. More than 30 lenders are there in the group.

Meanwhile, the directors of the company are of the opinion that the group is no longer in a position to continue to trade.

The plan of the group is to de-staple the shares in Alinta Energy Ltd from the Alinta Energy Trust units.

As soon as the trust units are got, security holders will carry on keeping their Alinta Energy shares.

The likelihood is that no additional equity will be available to security holders once the 10 cents per security is paid.

The stock of the group increased to 59% today, up to 9.2 Australian cents. Trade was done at 8.9 cents at 11:18 a. m. in Sydney.