Vodafone Idea may clear Rs 500 crore interest dues after moratorium ends

Stressed telecom major Vodafone Idea may pay interest dues of around Rs 500 crore to lenders in the December quarter.

The company has informed lenders it will clear accrued interest on outstanding loans after availing the six-month moratorium, which will end on August 31, according to a report by The Economic Times.

Vodafone Idea will not opt for loan restructuring, and has told lenders it will not require easing of repayment terms, the report said.

Moneycontrol could not independently verify the story.

To provide borrowers relief during the COVID-19 pandemic, The Reserve Bank of India (RBI) had announced a moratorium, which started from March 1 and will end on August 31.

“The telco has communicated that it would pay up the dues accrued in the last six months, and will not seek restructuring of loans as they have had cash inflows in the last six months,” a banker told the publication.

“The only issue is the adjusted gross revenue (AGR) payment. If the apex court offers relief, it’s a good company and a good business,” the banker added.

Vodafone Idea is currently awaiting the Supreme Court’s verdict on staggered payments of AGR-related dues.

Listen: Work near home the new WFH says WeWork India CEO Karan Virwani

“VIL will pay interest which could be around Rs 500 crore to the banks rather than go for a loan restructuring. If SC does not allow long duration for AGR payments then the restructuring will not help,” said the executive. Money Control