Troubles for Vodafone Idea seem to be mounting as Indus Towers may consider discontinuing its services if the beleaguered telecom service provider doesn’t make advanced payment.
Vodafone Idea owes Rs 7,000 crore to Indus Towers and had agreed to pay the dues by July 2023.
The debt-laden telco seeks fresh fund infusion amid uncertainty over conversion of dues to government into equity. The government has asked the company to infuse capital before any conversion of dues into equity.
Indus Towers has repeatedly warned Voda Idea that it could lose tower access if it doesn’t clear the dues.
An Economic Times report had earlier stated that the telco sought Rs 7,000 crore emergency funds from lenders. Bankers have sought clarity on the conversion of government dues into equity. The conversion of accrued interest on deferred AGR dues into government equity has been hanging fire over fresh capital infusion from promoters.
The conversion is important for raising funds in order to speed up 5G roll out. The fund infusion from promoters is critical for the survival of the telco as it tries hard to survive in a three-cornered fight with Jio and Airtel. Moneycontrol