Alinta Energy has agreed to transfer the bulk of its assets to lenders including TPG in return for the cancellation of its heavy debt load, in a deal that would create a private entity with 10 Australian power generators and an enterprise value around A$2.1bn (€1.5bn).

The proposal will rid Alinta of the debt hangover left by its relationship with former parent Babcock & Brown, which collapsed in 2009, and follows a similar restructure last year of the failed investment house's port and rail infrastructure fund.