Turkish incumbent Turkcell has disclosed that its Ukranian unit Astelit has failed to repay debt totalling about US$323m to fellow subsidiaries Euroasia Telecommunications and Financell by the due date of 1 February.
Turkcell said in a statement that…
Turkish incumbent Turkcell has disclosed that its Ukranian unit Astelit has failed to repay debt totalling about US$323m to fellow subsidiaries Euroasia Telecommunications and Financell by the due date of 1 February.
Turkcell said in a statement that Astelit, a fully-owned subsidiary of Euroasia, in which Turkcell has a 55% share and System Capital Management a 45% share, has consequently breached its loan arrangements. As such, the statement said Financell, Turkcell’s fully-owned subsidiary, is unable to meet repayment obligations to banks which Turkcell fully guaranteed. Financell is therefore also in breach of its loan agreements.
According to the statement, Turkcell’s board of directors intend to evaluate whether or not to provide an extension of guarantee to Financell within the loan agreement obligations.
Astelit has debts to Euroasia of about US$150m and to Financell of about $173m, the statement said.
It noted the Turkcell board had already granted Astelit waivers for the repayment of both loans until 1 February, upon which date it declined to grant further extensions.
