Mumbai: Manoj Tirodkar-controlled network services company GTL Ltd has started the process to secure necessary approvals to sell its operations, maintenance and energy (OME) management business to E2 Energy Services Pvt. Ltd for 850 crore.

The board of directors on Wednesday approved the proposed transaction subject to receipt of all necessary consents from regulatory authorities and lenders of the company.

The deal with E2 Energy was delayed due to dispute of unsecured lenders of GTL. Some of the unsecured lenders were claiming first right of the proceeds from the sale of OME business and had approached the court.

“GTL has secured shareholders approval to go ahead with the sale of OME business. Now, the company will start getting necessary approvals from the government and all lenders," said a person close to the development, who did not want to be named.

He said the transaction would be completed in the next four-five months.

GTL has sold the business on a going concern basis through a slump sale, the company informed the National Stock Exchange on Thursday.

A slump sale refers to the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to individual assets and liabilities.

“The aggregate consideration proposed to be received from sale of OME business will be about 850 crore, subject to certain working capital adjustments, costs and charges," it said.

The proceeds would be utilized to pay dues to the lenders.

This forms part of the effort by the company whereby it has proposed a one-time settlement offer to the lenders, which envisages the sale of its assets and investments in order to repay dues.

The total debt of the company for FY15 was at 1,858.13 crore.

GTL is going under the corporate debt restructuring process. Debt restructuring happens when a company goes through financial distress and is unable to meet its loan repayment obligation to multiple institutions.

GTL is mainly into networks and network-related services—for utilities, telecom service providers and original equipment manufacturers (OEMs). In the telecom segment, the company provides network services to telecom operators, OEMs and tower companies.

According to its website, the buying company E2 Energy or Essential Energy is a wholly owned Indian operating business of Intelligent Energy Ltd of the UK set up to address the growing gap between supply and demand of energy in India. Essential Energy is headquartered in Bengaluru and is focused on distributed power and generation, initially targeting the Indian telecom infrastructure market to deliver clean, efficient and reliable energy to keep mobile networks connected, the website says.