GTL Infra Lenders May Sell Loans To Asset Reconstruction Companies

Lenders of GTL Infrastructure (GTL Infra) are weighing options to cut their exposure to the telecom tower major by selling loans to asset reconstruction companies (ARCs).

“In view of the recent sector developments, options to right size the debt either through an ARC debt sale process initiated by lenders or in accordance with the revised RBI guidelines dated February 12, 2018, are being envisaged,” GTL Infra said in an exchange notification.

A consortium of banks led by Union Bank of India had an exposure of around ₹8,000 crore to the company which was halved to about ₹4,000 crore through a debt-restructuring exercise.

The company has posted a net loss of ₹1,845.89 crore for the fourth quarter ended March 31, 2018, compared with a loss of ₹90.08 crore during the comparable year-ago period.

The loss was caused by an asset impairment of ₹1,400 crore due to the bankruptcy of Aircel and closure of businesses by telecom players. – The Hindu BusinessLine