Lenders approve GTL rejig, ICICI to transfer stake

After the last meeting the lenders seem to have agreed upon a final restructuring package for GTL and its group companies. Under this restructuring package, the GTL promoter will bring in personal guarantee worth Rs 2,500 crore, which will be kept as a security for the lenders to restructure the total debt of Rs 16,000 crore.

Also, under the restructuring package, lenders have agreed to transfer ICICI Bank’s debt from GTL to the books of Chennai Network Infra Limited (CNIL), which is also one of the group companies of GTL and is under CDR right now. In return, ICICI will transfer its 29.5% stake in GTL back to its promoters. The promoters will keep this as collateral for the CNIL lenders.

Therefore, ICICI becomes the new lender to CNIL. Sources also reveal that ICICI will be treated at par with the other lenders of CNIL when it comes to interest rate payment. However, it will only get a second priority when it comes to the loan repayments as far as CNIL is concerned.