NEW DELHI: The company plans to do it by re-scheduling of high-interest loans to market-related rates for which negotiations with the financial institutions are at an advanced stage, Shashikant Ruia, the group chairman, was quoted as saying on Tuesday. A business daily reported that the group's proposal to the lending institutions was to make the settlement at the actual cost they had borne for their funds, which was around 16 per cent at that time. He said the problem has cropped up because of the high rates of interest, which the economy was unable to sustain. If every thing goes right, the group will settle its problems with the financial institutions and reschedule the loans at reduced interest rates, with the waiver of the extra interest that has been debited on its accounts. Another reason that has made the company suffer, according to Mr Ruia, is the over-capacity of the domestic market. "Indian domestic market continues to have around 25 per cent of over-capacity in flat product segment. This has affected the performance of Essar Steel even though it is earning operating profits," he was quoted be the business daily. "Restructuring seems to be the only way out to strengthen the operations. We will also make the company generate enough cash flows on a sustainable basis to meet all its obligations and reward its stakeholders as well," Ruia said.