Lenders to Bavaria Yachtbau are in talks over a proposal that may be tabled in coming days to take over the German yachtmaker as part of a restructuring that would slash its €900m ($1.3bn) debts.

Bavaria Yachtbau was bought by private equity group Bain Capital for €1.1bn at the peak of the debt bubble. It is struggling to make interest payments after a sharp drop in sales.