Indian infrastructure service provider Tulip Telecom has reached an agreement with lenders to restructure its debt of around Rs3,000 crore (US$557m), according to the Economic Times.
ICICI Bank is the lead bank agreeing to extend the company’s…
Indian infrastructure service provider Tulip Telecom has reached an agreement with lenders to restructure its debt of around Rs3,000 crore (US$557m), according to the Economic Times.
ICICI Bank is the lead bank agreeing to extend the company’s debt.
According to a senior banker cited in the report there had been a delay in the company’s debt recast application. “We are awaiting mandates from various banks to induct the company into corporate debt restructuring (CDR),” he was quoted saying.
The banker went on to say that the Rs3,000 crore of loans that the company owes to the banks will be recovered using stocks and collaterals of the company.
On 31 December 2012, Tulip Telecom announced that it had initiated talks with its senior lenders to restructure its debt with longer maturity periods under the Corporate Debt Restructuring (CDR) mechanism.
The restructuring is intended to improve liquidity and help the company to strengthen its core operations, said a company statement.
“Tulip has built a strong infrastructure for its enterprise data business, which involves significant investments,” said Lt Col H S Bedi, chairman and MD at Tulip Telecom, in the 31 December announcement. “The company, in consultation with its senior secured lenders, has taken the decision to restructure the debt so as to enable the company to repay its debt over a longer period, thus easing the debt and interest burden. Our senior lenders have shown support of our long-term business plans and are supportive of our efforts to achieve a sustainable debt structure.”
