After Reliance Communications, Tata Teleservices seeks debt recast from lenders

Key Highlights

• Tata Teleservices has sought debt recast to the tune of Rs 32,000 crore.
• The company has also asked for a fresh loan of Rs 5,000 crore.
• Joint Lenders Forum (JLF) is expected to meet with TTSL to consider its debt restructuring plan.

The telecom unit of Tata Group – Tata Teleservices has asked for restructuring of its outstanding debt of Rs 32,000 crore.

The company has approached a lender consortium led by State Bank of India and has sought extended maturity of 20 years for repayments along with a request for a fresh loan of Rs 5000 crore, a report by Economic Times said on Saturday.

TTSL is now the second company to ask for debt restructuring after Reliance Communication that has a net debt of Rs 45,000 crore.

The total amount of debt under TTSL goes up to Rs 40,000 crore, which included Rs 8000 crore of deferred spectrum payments.

Also Read: Delay in plans to offset debt led telecom industry to crisis

Lead banker in the consortium – Joint Lenders Forum (JLF) is expected to meet with TTSL to consider its debt restructuring plan, a report by The Hindu said on Saturday. It further added that the bank was not too concerned about its debt restructuring as it was part of the Tata Group.

TTSL tussle with NTT Docomo, Japan made the company pay $1.17 billion upon termination of its telecom joint venture.

TTSL loss widened to Rs 4,617 crore for FY17 from Rs 2,023 crore in FY16.