Mumbai: Indian telecom network service provider GTL Ltd has received lenders’ approval to restructure over $1 billion in debt, three sources directly involved with the matter told Reuters.
Last month, lenders to another group company, GTL Infrastructure Ltd , approved its plan to restructure debt worth Rs 4000 crore ($846.3 million) after it was unable to service its loans, two of the sources said.
The GTL group is looking to recast debt worth over $3 billion involving more than 10 banks, the two sources said.
GTL Ltd’s 14 lenders include State Bank of India , ICICI Bank , Punjab National Bank and Standard Chartered , they said.
“Detailed terms have yet to be finalized. Lenders have about 60 days time to come with a proposal,” one of the sources said.
The sources declined to be identified as they were not authorized to speak to the media.
A company spokes man declined to comment.
GTL Ltd is also considering selling a stake to a private equity investor in order to bring in cash but talks are at a “very preliminary stage,” a source said.
In July, India’s No.2 lender ICICI Bank assumed a 29% stake in GTL Ltd, taking over shares pledged by its founder. The bank recovered shares worth nearly Rs 200 crore at the time, according to IFR; it had loaned GTL Ltd Rs 500 crore.
GTL shares had fallen more than 60% on 20 June on market talk it may have fallen behind its debt-repayment schedule, or a stakeholder could have sold shares in the open market, market watchers said at the time.
GTL shares rose as much as 12% on Monday before ending up 8.1% at Rs 68.70 in a weak Mumbai market. The stock had hit its year high of Rs 462 in September, 2010.