Tulip Telecom has received the formal nod on its proposal for debt re-jigging from the Empowered Group of the Corporate Debt Restructuring (CDR) Cell.
A consortium of 13 banks and financial institutions that had given loans to the enterprise data services company, have approved the company’s CDR package, which will be spread over a period of 12 years.
The package, which covers debt of around Rs 3,000 crore, includes a 30 month moratorium on principal and 18-month moratorium on interest, the company said in a statement.
The promoters of Tulip Telecom have already infused the required promoter’s contribution of Rs 60 crore as required by the approval, the company said.
“I am confident that this CDR package will enable the company to quickly return to a position of strength. We have been able to retain all our marquee customers over the past year and intend to quickly turn our business around with the strong support of our customers, employees, vendors and partners,” said Lt Col (Retd) H. S. Bedi, Chairman and Managing Director, Tulip Telecom.
Tulip had issued Foreign Currency Convertible Bonds (FCCBs) worth $140 million in 2007, which came up for redemption in August last year.
However, it has been unable to repay the FCCBs and has been engaged in discussions for repayment of the same.
FCCB redemption
On the FCCB redemption, the company said its ongoing engagement with bondholders continues to be progressive and that it is working on reaching an acceptable solution for all stakeholders.
adith.charlie@thehindu.co.in