Bank of New England Corp. would receive an injection of $605 million in capital if the ailing company agrees to a debt-for-equity swap proposed Friday.
Committees holders of Bank of New England bonds have agreed to exchange their bonds for stock that will give them 92 percent ownership of the company.
Under the deal, the debt would be reduced from $705 million to $100 million. The difference, or $605 million, would be converted to equity capital for the bank.
James Dorsey, a bank spokesman, said the bank would review the bondholders' offer and discuss it with the board of directors.