Tulip Telecom in debt recast talks

MUMBAI Mon Dec 31, 2012 6:19pm IST

Related Topics

Stocks

   

MUMBAI (Reuters) - Tulip Telecom Ltd, which defaulted on a $140 million convertible bond redemption in August, said on Monday it is in talks with lenders to restructure its long-term debt.

Tulip, which designs and manages communication networks of large enterprises, is negotiating for a moratorium on principal and interest payments with banks, and extending the repayment period, which could help ease the debt and interest burden, it said in a statement.

Tulip had consolidated debt of 30.3 billion rupees at end-September. It was not clear how much of this amount will be restructured by banks.

"The near-term outlook is mixed, considering liquidity constraints and a volatile market environment, despite strong business fundamentals," Chairman H.S. Bedi said in a statement to stock exchanges.

Tulip joins a long list of Indian companies that have turned to the corporate debt restructuring mechanism, a voluntary process whereby creditors approve an easing of repayment terms.

Last month, lenders to Indian wind turbine maker Suzlon Energy Ltd agreed to restructure about 110 billion rupees of its debt, sources said.

(Reporting by Prashant Mehra; Editing by Sunil Nair)

FILED UNDER:
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage