GTL Infrastructure, the telecoms towers unit of Indian network services group GTL, has announced both a new debt restructuring plan and the resignation of its CEO.
In a filing with the Bombay Stock Exchange, GTL infrastructure said that its board had…
GTL Infrastructure, the telecoms towers unit of Indian network services group GTL, has announced both a new debt restructuring plan and the resignation of its CEO.
In a filing with the Bombay Stock Exchange, GTL infrastructure said that its board had approved a draft of the debtor-creditor agreement under the Corporate Debt Restructuring (CDR) scheme.
The CDR is a formal debt restructuring mechanism in India, which relies on the approval of 75% of a company’s shareholders.
GTL Infrastructure’s CDR plan will now go forward to the next stage in the CDR process, known as the CDR cell, to be approved.
The company also announced a series of changes to its personnel, including the resignation of the CEO, A.Ravi, on personal grounds.
Milind Naik has been appointed as the company’s COO. Prakash Ranjalker will continue as a whole-time director.
Manoj Tirodkar, the founder of the GTL group and non-executive chairman of GTL Infrastructure will guide the management on strategic matters, growth and M&A initiatives.
The company will not be required to appoint a new CEO given this board structure.
In a separate filing to the stock exchange, GTL Infrastructure revealed that IFCI, a financial consultancy group and one of GTL Infrastructure’s lenders, would be acquiring a 18.423% stake in GTL Infrastructure. In effect, IFCI is converting the debt it holds in GTL Infrastructure into an equity stake in the company.
GTL and GTL Infrastructure are reportedly both looking to restructure Rs170bn (US$3.8bn) of debt after they defaulted on repayments earlier in July.
