Lenders to GTL Infrastructure agree to clear a proposal to restructure its debt

MUMBAI: Lenders to GTL Infrastructure, the troubled tower company, on Friday agreed to clear a proposal to restructure its debt on condition that promoters provide a personal guarantee and infuse fresh equity.

Bankers would also evaluate proposals to sell the tower business during the implementation of the corporate debt restructuring package, said a source aware of the development.

"Lenders have agreed to clear the GTL Infrastructure debt restructuring scheme. The reduction in interest rate and tenure of the loan are yet to be finalised. The reduction in interest rates asked by the promoters is not viable. We are yet to reach an agreement on this,'' said a source involved in the negotiations.

Restructuring a loan typically involves a reduction in interest rates, an increase in the numbers of years in which it has to be repaid, or both.

"We have also decided to evaluate the proposal to sell the tower business eventually. There will be a second round of meetings to decide on the equity capital the promoters would have to pump in,'' the person added.

ICICI Bank, which holds around 28% stake in GTL Ltd, the parent company, is in talks with investors to find a buyer for the tower business.

"The panel of bankers is in dialogue with potential investors, including Viom Network and some private equity players," said a senior bank official involved in the debt recast process.

On July 29, ET had reported that Viom had offered to buy out GTL Infrastructure, part of the Global group promoted by Manoj Tirodkar. The company had subsequently denied any negotiations with Viom.

Source: Economic Times