DEBT-LADEN Drax Holdings has put forward a restructuring plan to allow the business to continue trading.

The business is writing to senior creditors proposing a restructuring of its £1.3bn debt and a related cash offer for the business from International Power.

The restructuring will involve £1,292m of the Drax group's existing debt, which includes £843m of bank loans, £200m of senior sterling bonds, £68m of currency and interest rate hedging termination payments and $302m (£186m) of senior dollar bonds.

The restructuring will be accompanied by the implementation of a new senior management structure.

Gerald Wingrove, finance director of Drax Holdings, will become chief executive officer of Drax Group Limited.

A new finance and production director, along with two non-executive directors, will be appointed to the board of Drax Group Limited.

Gordon Horsfield will remain as executive chairman of Drax Group Limited until the appointments have been made, becoming non-executive chairman afterwards.

Mr Horsfield, said: "The successful restructuring of the business is not only significant for Drax but also the UK's energy supply."

As the UK's largest, most efficient and one of the cleanest coal fired generation plants, Drax, in Selby, North Yorkshire, is at the centre of the country's energy provision.

* Drax's owner, Drax Power Limited, has welcomed an announcement by the Environment Agency that it is planning to approve an application for an 18 month petroleum coke trial.