Connect with us

Headlines of the Day

Vi picks SBI to negotiate ₹23,000 cr loan recast

Vodafone Idea has appointed SBI Capital Markets to negotiate the restructuring of loans worth Rs 20,000-23,000 crore that the loss-making telco is due to repay within the next four years.

The cash-strapped company has also sought an additional half billion dollars as loans for CapEx requirements critical to expand its 4G network and arrest subscriber losses to rivals Reliance Jio Infocomm and Bharti Airtel, two people familiar with the matter said.

“SBI Capital Markets was appointed last week and is going to lead the negotiations with the consortium of banks and also to discuss raising another half billion dollars for its CapEx,” said one of them.

A banker aware of the operator’s plans said that Vodafone Idea is in the process of submitting a comprehensive restructuring plan that includes the recast of loans, standstill on interest payments, longer payment tenures and lower interest rates.

“We are not averse to the proposal as it’s a standard account and some handholding will go a long way in reviving the operator,” the banker said.

Vodafone Idea and its lenders are looking to recast outstanding loans under the Reserve Bank of India’s June 2019 restructuring framework. Under this, banks can allow renegotiation of loan dues to improve the company’s liquidity if the promoter brings in equity. Pehal News

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!