The proposal comes after Tewoo Group said last week it was unable to repay interest on a US$500 million bond, prompting Industrial & Commercial Bank of China Ltd to transfer US$7.875 million to bondholders on its behalf. ICBC provided a standby letter of credit on the note - effectively a pledge to repay if the borrower can't. The firm's remaining US$1.6 billion of dollar bonds lack such protection.