New Delhi: Solar equipment maker Indosolar today said Union Bank of India has approved its proposal for one time settlement of debt.

“Union Bank of India has approved our proposal for One Time Settlement ‘OTS’,” Indosolar Ltd said in a BSE filing today.

According to the statement, the proposal has two components — serviceable debt and non-serviceable debt.

Serviceable debt shall be paid within six years and last installment will be due on or before March 31, 2024.

Non-serviceable debt shall be converted into optionally convertible cumulative redeemable preference shares ‘OCCRPS’ and shall be redeemed within four years starting from the date April 1, 2024, it added.