GTL and GTL in debt restructuring deal ahead of merger with Chennai Networks
29 Dec 2011
The boards of telecom network service provider GTL Ltd and group firm GTL Infrastructure Ltd have set up committees to finalise a corporate debt restructuring (CDR) plan ahead of a merger with Chennai Networks Infrastructure Ltd.
The committees will discuss, negotiate and finalise the terms and conditions, the companies said in separate releases.
However, in view of the new developments like restructuring of debt and consequent change in capital structure, the merger agreement with Chennai Network Infrastructure Ltd (CNIL) will have to be modified, the release said.
Earlier this year, GTL Infrastructure, a passive telecom infrastructure company, had acquired GSM operator Aircel Ltd's 17,500 towers and 21,000 tenancies for an enterprise value of Rs8,026 crore.
The acquisition was made through Chennai Network Infrastructure, a special purpose vehicle (SPV), and the company had plans to merge it with GTL Infrastructure.
The combined debt of the three companies -- GTL, GTL Infrastructure and CNIL - stands at Rs16,200 crore, making this one of the largest debt restructuring in recent times.
