GTL, GTL Infrastructure get final approvals to restructure debt
21 December 2011
Network service provider GTL Ltd and group firm GTL Infrastructure Ltd have received final approvals to restructure its debt totaling Rs16,000 crore, following a meeting of lenders on Monday.
The approvals came in after the promoters agreed to provide personal guarantees worth Rs2,500 crore that would be kept as collateral for the total debt, according to various media reports.
The companies were admitted to a corporate debt restructuring (CDR) plan earlier and had received initial approvals for a loan recast.
A master restructuring agreement (MRA) is expected to be signed in the next 12-15 days, and the CDR will be completed in the next 120 days.
GTL Infrastructure, a passive infrastructure firm, has total debt of Rs10,000 crore and GTL Ltd has a total debt of Rs6,000 crore.
GTL Ltd's 14 lenders include State Bank of India, ICICI Bank, Punjab National Bank and Standard Chartered. The lenders have agreed to increase the tenure of repayment of debt, and reduce the interest rates.